Great questions! A couple of points:
We think of turnover in two parts, name turnover and trimming/adding to existing positions. Overall turnover has generally drifted lower over the past few years. If you think back to our investment process, we are forecasting and valuing each business three years from now, which would equate to about 33% name turnover each year. Additional turnover through trimming or adding to existing holdings could occur if the price of a business drifted from intrinsic value.
To your point on timing, we have seen our portfolio turnover rates rise during periods of elevated volatility as the portfolios are repositioned to capitalize on market dislocations.
We also believe that individuals timing the market and attempting to buy/sell an asset class is different than trading individual stocks, which has natural turnover based on a variety of factors. At Cambridge Global Asset Management, we have conducted our own exercise by asking ourselves “what we are trying to achieve?” This leads us to perform deep research in and analysis of companies globally, which helps us create our upside/downside targets. This ultimately determines our parameters on when to buy/sell a stock.
I trust this answers your questions.
Thanks for your questions and have a wonderful day.