Unbelievably, another quarter has passed by and as the second half of 2015 rolls on, we ponder the low interest rate, low growth world we are living in. The three C’s, Central Banks, China and Commodities are all reacting to the challenges they face and behaving in interesting ways. The fiasco that was Greece appears to have died down in recent weeks, but I fear is far from over, whilst the opportunities that abound in technology and biotech march onwards.
In this latest newsletter we asked James Sullivan of Coram Asset Management, who co-manages our Special Situations Fund with Martin Gray, to comment on the themes in his fund and whether central banks can continue to control or drive markets forever? Interestingly, the fund is finding some potential opportunities, whilst still very cautious and positioned for further market weakness.
Shaun McDade has written his usual eloquent summary of our own International Asset Allocation views. Our long term structural asset allocation views of bullishness on global equity and exceedingly negative on global bonds and rising interest rates, continued to play out. Commodities have had a torrid time over the past twelve months and the somewhat surprising rise in the second quarter has quickly turned back into a rout. Andy Pfaff, our commodity expert, feels that we may be entering the capitulation phase soon! Roeloff also clearly articulates our South African domestic market and portfolio views.
Things have been busy at MitonOptimal, as usual, and of special mention was our inaugural road show in the Isle of Man. Shaun and I spoke about our investment process, strategic long term investment views and tactical asset allocation calls to a large audience, followed by numerous one on one meetings. Greg also organised a fantastic golf day at Castletown Golf Links, which include reasonably nice weather, which I understand is a rare event on the Island. Greg, who heads up our Isle of Man business, also writes about the importance of constant portfolio reviews and assessments in this issue.
Finally, we profile our other Kiwi with a Campbell surname, Blair Campbell, who is captain and star of the Guernsey Rugby team and an important member of our business. No surprise as who he would love to have dinner with? Oh, and our new website is to go live in August so please look out for that momentous occasion.
Quarterly Newsletter - Q2, 2015