The Washington H Soul Pattinson and Co Ltd (ASX: SOL) share price is trading in the green after the company posted a whopping 38% jump in profit for the first half, as The Motley Fool Australia reported earlier today.
Right now, Soul Patts shares are swapping hands for $28.66, 0.42% higher than they were at Wednesday's close.
For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.87% right now while the company's home sector, the S&P/ASX 200 Energy Index (ASX: XEJ), has slumped 0.19%.
It comes as the investment house cuts its exposure to shares in favour of private equity and structured yield products.
Soul Patts share price outperforms on earnings release
The Soul Patts share price is rising on Thursday as the ASX 200 icon revealed it turned away from the market amid soaring inflation last half.
Though, it noted we're "entering a stock pickers market" where value investors could reign supreme amid "increasing price for risk".
Commenting on Soul Patts' $1.3 billion of portfolio moves over the first half, CEO and managing director Todd Barlow said:
During the half we reduced our exposure to listed equities, particularly cyclicals and growth stocks, and invested over $400 million into private equity and structured yield products.
Around 20% of the portfolio is now weighted to alternative assets and cash, which do not re-rate as frequently as equities but are strategic for risk management and longer-term investment goals.
The company's net asset value jumped 16% year-on-year during the half, helping it to up its interim dividend by 24% to 36 cents per share, fully franked.
And its strong performance didn't end there. Its total portfolio outperformed the All Ordinaries Index (ASX: XAO) by 2% in February, with Soul Patts noting its defensive positioning is gaining traction in the current market.
Around 5% of the group was invested in its structured yield portfolio and another approximately 8% was housed in its private equity portfolio at the end of the half.
The investment house also bolstered its cash holdings by 257.7% over the period to reach $597.3 million – helped by the $88.5 million sale of the Castle Hill property.
