The New Star Cautious Portfolio fell by 7%# during the third quarter of 2008 while the IMA Cautious Managed sector lost 5.8%#. The main underperformers within the portfolio were Geiger Counter, Algebra-Alpha MENA, BlackRock World Mining and New Star Sterling Bond. A positive contribution in relative and absolute terms, however, came from Stratton Street Renminbi Bond.The portfolio sold Atlantis China Fortune and the wheat exchange-traded fund. Weightings were reduced in Henderson Strategic Bond and Threadneedle UK Equity Alpha Income. Marlborough UK Equity Income was topped up and positions were opened in JPM Highbridge Statistical Market Neutral Hedge and Matrix Ascension Closed End.