Investment

Chart of the Month – Active Management: being at the right place at the right time

by Sébastien Poiret

2018 – Active Management: being at the right place at the right time

French coach Didier Deschamps had to be very selective with his players and implement the right strategy to win the World Cup 2018.Active management is like soccer, you have to be a the right place at the right time. Active management is the right strategy for the second year in a row where investors had to be very selective.

Chart of the month Active Management
Source: Bloomberg

While most markets are down for the year as seen here below:

MSCI Emerging Markets 5.90%
Nikkei 0.90%
DJ Stoxx 50 Europe 0.90%
Bloomberg Barclays Global Aggregate Total Return 1.60%

most stock pickers and hedge funds are up by having a bias towards investing in the US (Dow Jones is up +2.38% YTD) and more importantly by being in the right sectors: Information Technology is up over 10% and Energy, Consumer Discretionary and Healthcare are all up above 6%.

While the MSCI World index USD is up +2.13% for the year, the spread between the best and the worst sector is more than 17.0% (as seen above).Despite the remaining political risks from Europe and the Trump administration, financials markets have now been rational for more than two years. Earnings and corporate activity are driving the stock markets and NOT macro fears such as EUR breakout, China hard landing and Oil collapse for instance.

We expect this environment to continue where active management should outperform passive index investing.

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Antonio Mira joined NS Partners in 2006 as Group Chief Financial Officer. He heads the corporate functions and is involved in coordinating and implementing the decisions of the Executive Committee.
An experienced bank auditor, Antonio started his career in 1995 with Arthur Andersen, where he worked for some 7 years before joining Ernst & Young in 2002 as a Senior Manager.
Antonio is a Swiss chartered accountant and a Business graduate of Lausanne University (HEC).

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Sébastien Poiret joined NS Partners in 2008 and manages funds of hedge funds and private client mandates. He also oversees the development of the Group’s offices in Mauritius.

Prior to joining NS Partners, he served as a Trader, Head of Manager research and Portfolio Manager in the USA and Switzerland for a single hedge fund (1998-2004) and for Optimal (2004-2008), Grupo Santander’s fund-of-hedge funds operations.

Sébastien holds a Bachelor’s degree in Corporate Finance from the ESPEME Business School (EDHEC Group) and an MBA in Finance and Economics from the Institute of Business Administration, both in Nice.

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Among many other ventures, Abir set up Alibaba.com’s first European office. After living and working in Shanghai, Hong Kong, Bangkok and London, she now lives in Geneva, where she is CEO of Lift Events, an organization that identifies technology trends, their business and social impact through the organization of events and open innovation programs. Issues related to the challenges and opportunities created by new technologies as well as the strategic responses from organizations are at the heart of Lift’s activities.
Abir holds a BA in Political Sciences from the University of Geneva. She is an investor, and member of advisory and innovation boards.

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