Buying undervalued stocks is traditionally the way investors seek to deliver returns over the long term. At Vega Capital, we utilise a differentiated way of looking at the markets in the United States and discuss it in today’s blog. There are two overarching algorithms we utilise, the first uses macroeconomic... Show More
With markets pulling back over the past few weeks, many investors are wondering whether this is the beginnings of a bear market. Today I wanted to discuss these trends and how I’d approach them. Show More
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
Over the past 12 months, a common headline in the financial pages has pointed to record low levels of volatility, as measured by the frequently quoted VIX volatility index. Yet for Australian equity investors, increasingly volatile share price movements in many stocks belies what the VIX is actually indicating -... Show More
Last week we saw BWX, BKL, A2M, WTC, NCK, NAN and BIN all up 7% or more. BAL is up 85% in three months, A2M is up 83%, WTC is up 55%, BWX is up 28%, BLA is up 46%. The mid-cap sector is having a dream rally. A lot... Show More
Implied volatility is now trading at record lows across a variety of asset classes, especially in US equities. This means that option markets are priced in the belief that the economic and political outlook in America and the world is as stable as it has been for more than 25... Show More
Equities are in the late stages of a near-record bull-market, and rates are once again heading up. In this exclusive interview, Arik Star, Portfolio Manager, Ellerston Global Investments, identifies the key risks in this environment. He also points out that in any given year there will be stocks that have... Show More
It is widely acknowledged that the outlook for economies and markets is unusually uncertain, given the huge political changes that we are witnessing globally. It is also widely acknowledged that most assets are expensive and priced to offer sub-normal prospective returns. Why then is volatility (the VIX) so low? History... Show More
Bloomberg has published five charts that give some reason for investor caution, starting with the significant divergence between VIX and gold inflows: “Gold inflows have not been matched by movement in the VIX, and a gap has opened up between the two measures. “While stocks and corporate bonds have rallied... Show More
US volatility index has come down to current levels five times in the last decade. Every time the market ran into short term profit taking cycle with rising volatility. Show More
