Chart of the Month – Rotations

by Pierre Mouton


I personally love skiing.

Like all ski addicts, I know what rotation means:

  1. Feet and knees trigger a change in orientation.
  2. Edge grip
  3. The upper body stays in front of the slope and does not rotate.
  4. The turn is controlled and mastered.
  5. Conclusion: rotation is necessary, good and helps

Like all equity portfolio managers, I know what rotation means:

  1. Growth outperforms Value, or Value outperforms Growth, in this secular opposition between styles.
  2. This happens whatever the direction of the market.
  3. A portfolio can suffer or profit from rotations.
  4. It is awfully difficult to time the market, and, on top of that, to time rotations.
  5. Conclusion: rotation is potentially dangerous

It’s easy to see that in skiing you are the source of the rotation, whereas in equity investing you are subject to it.

Source: NS Partners, Bloomberg

The Chart of the Month is divided in two parts:

  1. The upper part shows the performance of the MSCI World Net Total Return in euros since 2017. It has more than doubled.
  2. The orange line in the lower part displays the relative performance of the MSCI World Growth versus the rest of the market. It has bettered the MSCI World by more than 20%, but how volatile this has been! And the blue line represents the relative performance of our equity flagship DGC Stock Selection, which has done better than both the MSCI World and the MSCI World Growth over the period.

Investors have a natural tendency to try to time the market; this is very frequently a failure. Looking at all the rotations highlighted in the Chart of the Month, they also have to cope with styles, adding another risk of failure.

We believe at NS Partners that we offer a comprehensive and reasonable equity exposure with a blended global equity fund with no style bias, as shown by the blue line in the chart of the month. As you can see, our DGC Stock Selection fund has been able to deliver an appreciable outperformance, without having been biased towards Growth or Value, but by applying a disciplined approach in terms of valuations and quality.

History tells us that long periods of outperformance from one style versus another tend to correct, but the timing is uncertain. We expect many more rotations in the future.

Like an advanced skier who will always keep his shoulders in front of the slope to make sure he controls his trajectory while rotating his feet and knees, our fund will continue to focus on quality and valuations, whatever the sector, in order to smooth out style rotations and, hopefully, deliver superior performance for investors going forward.




Past performance is not indicative of future results. The views, strategies and financial instruments described in this document may not be suitable for all investors. Opinions expressed are current opinions as of date(s) appearing in this material only. References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only. NS Partners provides no warranty and makes no representation of any kind whatsoever regarding the accuracy and completeness of any data, including financial market data, quotes, research notes or other financial instrument referred to in this document. This document does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. Any reference in this document to specific securities and issuers are for illustrative purposes only, and should not be interpreted as recommendations to purchase or sell those securities. References in this document to investment funds that have not been registered with the FINMA cannot be distributed in or from Switzerland except to certain categories of eligible investors. Some of the entities of the NS Partners Group or its clients may hold a position in the financial instruments of any issuer discussed herein, or act as advisor to any such issuer.  Additional information is available on request.
© NS Partners Group

Return to listing
back to
the top
Antonio Mira

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).

Sébastien Poiret

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.

Abir Oreibi

Abir Oreibi joined the Board of the NS Partners Group in 2018, where she brings her truly international perspective and rich experience.
Among many other ventures, Abir set up’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.

Romain Pidoux, CAIA

Add Your Heading Text Here

Romain Pidoux joined NS Partners in 2011 and heads the Group’s Risk Management.
He started his financial career in 2005 as Head of Quantitative Analysis for a Swiss Family Office, selecting funds and managing portfolio allocation. In 2008, he switched to the alternative world and joined Peak Partners as hedge funds analyst.
He is a Chartered Alternative Investment Analyst (CAIA) and holds a Master’s degree in international relations from the Graduate Institute of International Studies at Geneva University.

Your browser is not supported. Please use another browser.