Economy fixer now the issue: Antipodes
Injecting the antibiotic of Quantitative Easing (Q.E.) into the global economy during the Global Financial Crisis (GFS) is no longer helping and is now creating distortions within global asset markets, according to Antipodes Partners.
Antipodes Partners chief investment officer, Jacob Mitchell drew attention to fixed income in the fund manager’s outlook, and said the Q.E prescribed by central banks from 2007/2008 had European junk bonds yielding less than 10-year US treasuries.
“As the antibiotic is eventually unwound (either actively or via inflation), credit markets and expensive equity sectors such as staples and internets may be vulnerable as the search for yield and growth subsides,” Mitchell said.
“The majority of passive inflows into ETFs are heading into parts of the market that on Antipodes Partners quantitative scores are close to long-term relative valuation highs.”
The Antipodes Global Fund – Long Only has first quartile one, three and five-year returns, according to FE Analytics, which Mitchell said reflected a fund investment structure focused on non-correlated opportunities.
“Advisers and investors recognise the benefits of our high conviction, risk aware philosophy,” Mitchell said.
“Low-volatility strategies and so-called bond like equities that have been chased irrespective of earnings growth will also be vulnerable going forward.”
FE Analytics showed the Antipodes Global Fund – Long Only fund has a one-year return of 25.02 per cent ahead of the 21.06 per cent benchmark and annualised 10 year returns of 6.43 per cent ahead of a fourth quartile 5.04 per cent benchmark.
AUTHOR
Hope William-Smith
Recommended for you
Investment solution provider Channel Capital has appointed James Archer as its latest distribution director, joining from Pinnacle Investment Management.
Bennelong Funds Management has signed a memorandum of understanding with US private credit manager Monroe Capital to distribute its products in Australia.
Global equity manager Talaria Capital has appointed a Sydney-based sales director as it grows its distribution presence across Australia.
Global private markets firm Partners Group has launched an evergreen fund to provide Australian advisers with access to its cross-sector royalties strategy.
