Saurabh Mukherjea using market rally to hoard cash in smallcap portfolio. Will it pay off?

Saurabh Mukherjea, founder of Marcellus Investment Managers, raised cash and trimmed exposure in his small-cap-heavy Little Champs portfolio as small- and mid-cap stocks rallied in March. Concerned about valuations and decelerating earnings, he anticipates further corrections. He believes cash will help mitigate declines and provide opportunities to invest in quality stocks once the market stabilizes.