Opinion

In an imaginary world, being a hedge fund investor called Seth Klarman with a fund called Baupost would be fun, based purely on unusual names, but also on the longevity of his loyal followers. In the past week, this ‘renowned’ (there are a few after all) investor noted that the concept of risk has vanished…

Asset consultancy Atchison Consultants expects 2021 to be a “recovery year” on global markets, based on the prospects for the COVID-19 vaccines that are being rolled-out, but says these prospects are themselves the major risk, given the amount of investor optimism that has been baked-into valuations on the back of the vaccine announcements. While the…

Financial advice industry bodies including the SMSF Association (SMSFA), Association of Financial Advisers (AFA), and Financial Planning Association (FPA) have jumped on ASIC’s Affordable Advice review to call for an industry reset. This week the SMSF Association released their submission, with key concerns relating to compliance, both in terms of costs and burdens being applied,…

For entertainment value, and sometimes returns, little can match an activist short seller. Infamous Muddy Waters is the best example. It claims 19% per annum returns over the past five years, notwithstanding a decent bull market, 2.5% management cost, and 30% performance fees. Its web site provides a colourful synopsis of its short positions littered…

The recent surge in the market value of Bitcoin (BTC) has made headlines this holiday season as the underlying structure of the market continues to attract more institutional investors. Recent announcements from global leading fund managers, corporations and insurance companies have highlighted a seismic shift in an investor base focused on Bitcoin’s value proposition of…

The time seems right to review my investment strategy calls of 2020 and put forward some ideas on the most important action to take before the year comes to a close. In general, the big calls have delivered, particularly the decision to hedge any overseas exposure, with the AUD staging a remarkable rally on the…

Machines and the Mind Around 70%-80% of equity market volume is driven by algorithmic trading. There are a host of actors in this process, from hedge funds, exchange-traded funds (ETFs) and commodity trading advisers (CTAs). It also includes fundamental investors that refine their positions, for example, “percentage of volume” (POV) execution that matches ‘buy’ or…

As the year from hell winds down around the world, an influx of 2021 outlooks have flooded adviser inboxes around Australia. Most should be taken with a grain of salt, the standard global equity managers flagging strong equity returns and long bond managers suggesting the duration game isn’t over yet. In my experience though, the…

There are positive signs for the Australian economy following Wednesday’s third quarter GDP figure. It was a positive reading of 3.3% quarter on quarter, signalling a rebound in the economy is well underway. This marks the end to the pandemic led economic downturn and a gradual return to business normality. It was a massive beat…

Active management will be essential for fixed income investors looking to navigate fixed income markets in the months and years ahead As investors continue to grapple with the US election outcome, the economy, coronavirus developments, and other unknowns, the one certainty is that the ability to navigate the fixed-income markets will be critically important in…

Leading global ‘distressed debt’ manager Howard Marks and his Oaktree Capital firm are well-known for their sometimes combative and private equity approach to investment. The firm has increased its work in Australia in recent years after achieving some success buying-out and breaking-up the Blue Sky Alternative Asset Management empire, and more recent involvements with Virgin…

I’m often asked by clients and industry figures about Datt Capital’s position on ESG. For a number of reasons, I have difficulty giving a black-and-white answer. It’s fair to say that ESG, or its shorthand – ethical investing – has become part of the funds management zeitgeist, aided in part by much research pointing to…