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Demystifying long and short funds

Long/short funds are a type of fund that aims to maximize the upside of markets, while limiting the downside risks. To do this, these funds take both long and short positions in investment positions, often from a specific market segment. Here we look at long / short funds in more detail, specifically how fund managers…

Running down a coal mine could beat selling it

BHP Group’s decision to wind down its Mount Arthur coal mine rather than sell to a private buyer will shorten the mine’s operating lifespan and reduce overall expected carbon emissions. It underlines how a strategy of running down a coal mine may beat divestment for real world carbon impact. “Would that it were so simple,”…

Inflation is 2022’s boogeyman

An entire generation has never experienced life with high inflation. But that is set to change. Countries like Australia, Canada, the United Kingdom and others are reporting rising inflation. In New Zealand, inflation has climbed to its highest rate in 32 years. Our collective inexperience with the scourge of inflation, and how to solve it,…

australia cryptocurrencies

Will Cryptocurrencies liberate money from central banks?

The dream that decentralised finance – or “DeFi” – can free the monetary system from the clutches of governments and banks has helped launch 20,000 cryptocurrencies. But with 2022 proving to be more of a crypto-nightmare – including for the vaunted “stablecoins” that held the most promise as rivals to central bank-issued currencies – questions…

Investing “Talk to me Goose”

Slavish adherence to being ‘data driven’ should not be an excuse for avoiding thinking and intuition. The past decade has been vastly more abnormal than normal in the wider lens of history. Using this decade as the basis for future investment settings looks unwise to us. When Maverick clutches the dog tags and whispers the…

Navigating the market’s murky waters

We have accepted the fact that there won’t be many quiet weeks in markets this year. Equity markets tumbled on Tuesday morning (newswires blamed growing recession fears), but most stock markets climbed for the rest of the week and ended up gaining almost 2.0% heading into Friday. Bond yields ended a touch higher, with yields…

How worried should we be about inflation?

Inflation at its present level is certainly a concern. It will be more of a concern if inflation stays high over a sustained period. Already we have seen evidence of inflation eating into the disposable incomes of families and reducing the profitability of some companies. Even so, shares have rallied moderately well since the US…

Can investors bring improved health and wellness to emerging markets?

Impact investing: companies providing health and wellness products and services can make a positive impact on people in emerging markets. Impact investing incorporates dual goals of generating positive contributions to society and the planet, as well as attractive financial returns. We believe this is achieved by investing in the shares of companies which, as well…

The recession everyone sees coming

Right now, the market is trading based on one issue: inflation. This week was a bad one for inflation. The selloff in oil and industrial commodities continued. Since last Friday, WTI crude has fallen over 11% and gasoline futures are down ~12% from recent highs. Copper is in its worst 10-day selloff since March 2020, when the whole world…

An investors guide to dissecting supply chain disruption

We are now over two years into the pandemic and the world is still battling supply chain disruptions that are being amplified by the war in Ukraine and COVID-related lockdowns in China. Investment Director Catherine Yeung and Head of Asian Fixed Income & Hong Kong Investments Marty Dropkin gathered with Fidelity analysts and portfolio managers…