Since 2009, the nature of markets has been tempered by exceptional accommodation from central bankers around the globe. Now that we are leaving these calm waters as they are expected to slowly set on a path of normalizing policies, we are left with the reality of subpar growth, high indebtedness, income disparity, lack of structural reforms and high degree of uncertainty due to globalisation backlash and the rise of populism.
Such uncertainty makes markets prone to sudden outbursts of volatility. While uncertainty presents increased risk, reward seems limited in traditional long only vehicles with both bonds and equities close to record highs. In such a climate, in which a tweet can move global markets instantly, sudden outbursts of volatility are not unlikely and call for flexibility and quick adaptability to shifting market conditions.
Disciplined and agile boutique investment fund like ours offers a speedboat where Titanics are doomed to stumble, sooner or later. Our solution to navigate these tricky times is the one of quickly adapting to new developments, benefiting from moody markets instead of fearing them and profiting from up and down movements alike, yet at lower costs and with unrestricted liquidity.