Over a full cycle we have historically performed best on a relative basis during falling or bear markets, performing strongly on an absolute basis through most of the bull market, but the later stages of the bull market we have generally underperformed. The underperformance or bond like returns during the later stages of the bull cycle is due to two factors:
1) We find if necessary to protect the portfolio with hedges as the exact timing of the market decline is not possible to determine.
2) As we own conservative dividend paying stocks, these stocks tend to underperform the high flyers, especially as the market narrows.

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PVG – Equity Income Monthly Update (August 2015)