One of the managers we have selected in King Tide has written a note on "Questions to ask your Fund Manager". We concur with many of the points he makes, including:

"Most fund managers claim that preservation of capital is the priority.  We have not yet come across a fund saying risk-taking is more important than capital preservation.  However, most funds do not have the flexibility in their investment mandates to actually preserve capital.  If a fund can have a maximum of 10% cash and not able to hedge using derivatives, then there is no way this fund can preserve capital in a severe market decline".

To read the whole article, click here

One of the managers we have selected in King Tide has written a note on "Questions to ask your Fund Manager".

We have recently added Firetrail Absolute Return Fund to our portolios.

Patrick Hodgens, Firetrails Managing Director explains why "Timing the Market" is a nice thought, but difficult in practice.

Size, Age and the Performance Life Cycle of Hedge Funds

This study looks at the 'curse of success' that hedge fund managers must deal with if they are to maintain performance - to read click here

In a recent presentation Kerr Neilson, founder and CEO of Platinum Asset Management, told the audience that the current economic environment presents a "situation that is actually quite rate".  Almost all economic indicators are "extremely positive"; everything from global PMIs, to metal prices, oil prices, and even company earnings, have been on the rise.  But how do you approach a bull market that may be in its latter stages?  Kerr said: "Here's the problem we face as fund managers.  If you go out too early, let's say by six months, you could leave 14% on the table.  If you leave late, you might be down 10% within six months.  So, what do you do?"   To watch the full video presentation click on the link here.



Howard Marks says that second level thinking is essential to be a successful investor.  In this article, Hamish Douglas of Magellan provides some insights into what this means, whilst describing the significant changes which are occurring in businesses today.

In this months' August newsletter, Sam Brindle, has written an interesting section on Bitcoin.

We believe this is an excellent article which was published in the NZ Herald this week, by Brian Gaynor about Property Syndicates

Risk revisited

"If you buy something for $10, and sell it a year later for $20, was it risky or not?  The novice would say the profit proves it was safe, while the academic would say it was clearly risky, since the only way to make 100% in a year is by taking a lot of risk.  I'd say it might have been a brilliant safe investment that was sure to double or a risky dart throw that got lucky"


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