VAR CAPITAL INVESTMENT COMMITTEE MEETING – DECEMBER 2020
How 2020 began and early expectations At the beginning of this year, the key issues dominating the investment world were: Impending US elections – A majority Biden victory could have caused short term volatility in the markets Valuations – Whether the strong momentum sustaining into 2020 because the global equity markets had gone up by ...
How 2020 began and early expectations
At the beginning of this year, the key issues dominating the investment world were:
Covid, at that point in time, was still more or less confined to China and was far from expected to become a global pandemic
The actual year, however, was most unusual
What are the expectations from 2021?
Source – Morgan Stanley, 16 December 2020. Cons. = Consensus
Clearly, the markets are willing to look beyond the ongoing second corona wave and price in a vaccine – led return to normalcy and a robust economic recovery
Source – Exane
The risk-on rally is also manifested through the ongoing fall in the value of the US dollar that is usually considered a safe haven asset and is, therefore, being shunned in the current environment
Source – JP Morgan
Equity valuations look stretched but not compared to the fixed income
Key question remains if the Value and Cyclicals vs. Growth and Defensives rally that we have witnessed in November has legs and if it will be an important feature of 2021
Brexit deal
How is VAR positioned?
VAR ended the year with a very strong performance, outperforming our peer group and benchmarks significantly. We also won the investment team of the year award from STEP.
Our Positioning – Two-pronged approach
We continue our two-pronged strategy that we have been employing for sometime now. This includes the following :
Equity strategy – avoid biases
Bond Strategy – being Tactical
Please let us know if you have any questions.
Contact
41 & 43, Maddox Street Mayfair, London W1S 2PD +44 207 0960 790
VAR Capital Ltd is a limited company incorporated in England and Wales with registration number 09159540. UK registered office 41 & 43, Maddox Street, Mayfair, London W1S 2PD. VAR Capital Ltd is authorised and regulated by the Financial Conduct Authority (FCA). Firm reference number 718558. VAR Capital is a trademark of VAR Capital Limited under the UK intellectual property regulation. Trademark number: UK00003429839