NESCO is a low-risk compounder and has been more of a cash proxy for our portfolio. Fortunately, it has stood that test well- despite carnage in small and mid caps, it hasn't fallen much protecting our downside while offering returns better than fixed income.

The recent correction in broader markets has thrown some interesting bargains. Since we are now almost fully invested, we have to keep ranking businesses in terms of their risk-reward potential and exit some to make room for better opportunities.

While we continue to like NESCO, for now we are exiting it. In future, whenever we have idle cash or when we prefer to position portfolio in a defensive way, we may consider re-entering.