Facebook had a weak result. Nothing overly dramatic, but a modest miss nonetheless, of 4-5% relative to consensus, and modestly worse for the outlook statement.

The stock traded c20% lower, and was convincingly hammered.

Now, in part, this is the tech / growth / rates story playing out. But it is also a sign of market nervousness, and the willingness to punish good businesses is another reminder that with high valuations, and high volatility, that asset allocation is the thing to keep in focus.

We absolutely want our direct equity carve-outs to do well, but abstracting to a higher level, ensuring that the funds reflect intended tilts (which in our case does reflect a moderate degree of defensiveness given that valuation backdrop) is important.

As always, asset allocation drives returns. Boring, but true.

[NB, I should leave the note there, on my cool last line, but it is worth mentioning that FB’s daily active user (DAUs) stats declined, which is pretty ominous]

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