All posts by 2n20.com

Manager Spotlight September 2015

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Maciej WisniewskMWi
Founder & Fund Manager,
Macromoney Investments

AuM: USD 7 million
Strategy: Global Macro with Equity Bias

Favorite…
Sport: Martial Arts
Food: Asian cuisine
Book: The Art of War by Sun Tzu

If you could time travel back to day one of your fund and have 15min with your former self to communicate any lessons you’ve acquired with the intention of saving yourself headaches, what would you tell yourself?
As Graham used to say: “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” So be patient even if for a few months the market is not in line with your convictions. But as Dan Loeb stressed in 2008 at the apex of the financial crisis, sometimes you have to be also able to change your mind in response to the evolution of market signals/data.
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Opinion: Index fund parasites are killing their host

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Jeffrey MillerJeffrey Miller
Partner,
Eight Bridges Capital Management

A man who does not think for himself does not think at all. – Oscar Wilde
Global stock markets are in a little bit of turmoil, and the reasons are many. A primary driver of the recent volatility is the increasing concentration of assets in investments where no one is driving the bus. Index funds are, by definition, parasites. These funds assume that the current price of a stock is the “correct” price at all times, and that trying to make a judgement about the company is futile. When Vanguard was small, it could be the parasite – charge really low fees, rely on the work done by active investors to adjust prices to reflect the fundamentals of the underlying business, and be the parasite along for the ride. But now, forty years later, the parasite has grown too large. Small amounts of money indexed to large companies don’t really impact the stock price. But large amounts of money do.  A parasite only survives so long as it doesn’t kill its host. Read More

Poll Result: Isn’t a discretionary trader the real ‘black box’?

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In our last newsletter Gernot Heitzinger of smn Investment Services asked whether a discretionary trader isn’t the real ‘black box’.

We asked you – our readers – whether you agree with this bold statement.

The opinions were not as divided as one might expect with a topic as controversial as whether all discretionary trading can not lead to predictable returns.

In the end a clear majority voted that they agree that a discretionary trader is the real ‘black box’.

Poll Result_2015_08_website

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Opinion: Isn’t a discretionary trader the real ‘black box’?

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Gernot Heitzinger
Managing Director,
smn Investment Services

After years of bullish markets around the globe combined with a constant decrease in volatility, some spice has come back to global markets recently. Be it the bursting bubble in China, the endless story about Greek debt or maybe the epiphany that printed money will never be able to change anything in the real world. In the end it will not make a difference to find out the trigger for the turnaround, but at some point investors will again have to face the fact that every bull market comes to an end at some point. But how to react? Read More

Poll Result: “Is Italy is the next domino to fall in the Eurozone?”

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In our last newsletter Jonathan Rochefort of Narrow Road Capital predicted that Italy is the next domino to fall in the Eurozone.

We asked you – our readers – whether you agree with this bold statement.

The opinions were divided as one might expect with a topic as controversial as whether Italy will default or not in the foreseeable future.

In the end the majority voted that they disagree that “Italy is the next domino to fall in the Eurozone”.

Poll Result 2017:07
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Manager Spotlight July 2015

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Pedro de NoronhaPedro de Noronha
Founder & Portfolio Manager,
Noster Capital

AuM: USD 47 million
Strategy: Global Value

Favorite…
Sport: Surfing
City: Lisbon
Restaurant: Oliveto (London)
Book: The surrender experiment (M. A. Singer)
Artist: Elijah Bossenbroek

If you could time travel back to day one of your fund and have 15min with your former self to communicate any lessons you’ve acquired with the intention of saving yourself headaches, what would you tell yourself?
Continuously improve your processes, even (especially) when things are going your way. There is always something that you could be doing better. Read More

Opinion: Italy is the next domino to fall in the Eurozone

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Jonathan RochfordJonathan Rochford
Portfolio Manager,
Narrow Road Capital

In the last six months the inevitability of a haircut on Greek government debt has become obvious with even the IMF putting forward that the current level of debt is unsustainable. Once markets have digested that, the logical question is who will be the next Eurozone nation to default?
Portugal, Ireland, Italy and Spain are the main contenders with each having their own issues that could bring them unstuck. Amongst this group, I’m singling out Italy as the weakest, even though the ten year government bond yields would indicate Italy is the second lowest risk amongst the four. Read More