Today I wanted to provide some depth on how we use VIX products to manage risk in The Vega Fund portfolio. As far as we know, we’re the first fund in Australia to hedge in this particular fashion and hence some clarity is warranted. It’s not the only tool in... Show More
Whilst global markets have maintained positive momentum into 2017, valuations look stretched. Markets are going to run into the US reporting season given the US leadership change and the recent rally pricing due to the optimistic outlook. However, US fiscal policy uncertainty, historically low volatility, rising USD, rising yields and... Show More
Global markets are recovering from the recent pullback on central bank uncertainty and US election worries. The yield squeeze pressures are beginning to wane while European bank worries are coming back to haunt the markets. Local market is moving into AGM season and that will raise the risk of substantial... Show More
Macro outlook: Global markets are balancing the central bank stimulus against global growth worries to move higher. The FOMC’s likely move to weaken USD and China stimulus will keep resources supported in the short to medium term. Brexit related stocks are likely to have uncertainty hanging over them for the... Show More
Strategy outlook: We maintain a bullish long term view on the Australian equity market while short term volatility is expected through the US interest rate cycle and China growth slowdown. We remain positive on the yield and currency trade, while domestic economic deterioration will expose Australia to global volatility even... Show More
Quant Strategy Portfolio | March update - Lack of leadership supporting the markets | Strategy outlook: The lack of government leadership to drive fair and balanced reform through election cycles has forced the RBA to cut rates to historical low levels. The relative low returns in the alternative investments are... Show More
Quant Strategy Portfolio | February update - Managing RBA and CNY effects | Strategy outlook: We maintain our long term positive view that the market will reach 6500 in the next 12-18 months while short term profit taking risks remain with post reporting season lack of buying support, post Chinese... Show More
Quant Strategy Portfolio | October update - Ride the rebound | Strategy outlook: We maintain our positive view that the market will recover from the recent profit taking on geopolitical, currency and global growth worries. Portfolio changes: PPT was added while VED was removed. Current model portfolio: Materials - large (BHP,... Show More
Quant Strategy Portfolio | September update - Maintaining three pillar diversification | Despite the short term volatility on the strength of US recovery relative to other regions, we see positive medium to long term equity market prospects due to subdued growth in all other regions of the world. Potential further... Show More
Quant Strategy Portfolio | August update - EUQE: the size does matter | Portfolio changes: BRG, BTT and KMD were added while CCP, IFL and NCM were removed. Current model portfolio: Materials - large (BHP, ILU, RIO); Commercial & Professional Services - mid (SEK); Transport - large (SYD, TCL, TOL); Consumer... Show More