Asset Management

We combine deep qualitative analysis by our team of investment specialists with powerful quantitative analysis from our proprietary software to inform an unconstrained approach for strong, risk-adjusted returns.

October 2018 Investment Update

Georgios Mouskoundi, Head of Advisory, introduces our investment update for September. The document contains an overview of our views on the various asset classes, as well as a range of high conviction investment ideas in equities and fixed income.

Brexit, blockchain and banking

What would it take to make London the digital capital of the world? Dolfin CEO Denis Nagy joined the line-up of speakers at Binary District’s most recent London event to consider whether blockchain is the answer.

Dolfin awarded custody and depositary licence in Malta

Ramon Bondin, recently appointed CEO of Malta-based Dolfin Asset Services, announces our new custody and depositary licence on the island and how it will benefit our clients.

April 2018 investment update

Vassilis Papaioannou, CIO, introduces our investment update for April. The document contains an overview of our views on the various asset classes, macroeconomic analysis for the US, UK and the euro area, as well as a range of high conviction investment ideas in equities and fixed income.

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6 April 2018 / Monthly updates
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Dolfin

The first quarter was a tale of two halves, with January delivering some of the best equity returns seen over than month in 40 years, quickly superseded by a correction with equity market down 10 per cent. The V-shape recovery, we correctly predicted, faded as Trump’s tariffs made investors uneasy, creating clouds over the ‘synchronised global growth’ narrative.

Trump’s tariffs made investors uneasy, creating clouds over the ‘synchronised global growth’ narrative.

What do Trump’s tariffs mean for the rest of the pro-trade world? More trouble for the “Goldilocks economy” or is it a negotiating tactic? We argue it is both, as the first tariffs on steel and aluminium were used mainly as a pressure point against Canada and Mexico during the NAFTA negotiations, shortly after most US allies were exempted from the tariffs until further notice. The $50bn tariffs against China go beyond trade balance. They signal a tug of war over the new digital economy of artificial intelligence, digital payments, cybersecurity and intellectual property rights. Of course, in a tit for tat trade war the only outcome is a lose-lose. Hence, we expect markets to remain volatile which informs our neutral stance and having selective buying in mind.

The lack of consensus, persistent volatility and the Fed’s commitment to policy normalisation create a blurry picture for equities and fixed income. We remain neutral on global fixed income, with a preference for US credit on an absolute and relative basis. Carry is king in the investment grade and high yield space, but we look for short duration issues from high quality companies despite tight spreads globally. A hawkish Fed within equity volatility and a reluctant ECB to tapering will keep rates stable and curves flat, thus providing some comfort to the fixed income investors.

Turning to equities, we remain cautious with the euro area remaining our favourite region. Growth sensitive sectors will remain under pressure, however as we enter the earnings seasons and with a solid macroeconomic backdrop, we should see some relief rally. We are looking for opportunities in financials, consumer and technology. The recent data breach scandal that sent Facebook stock haywire and Trump’s obsession with Amazon, might cause temporary profit taking but the technology theme remains intact. High dividend companies in the UK appear attractive and combined with a positive sterling outlook constitute an interesting choice for international investors.

The lack of consensus, persistent volatility and the Fed’s commitment to policy normalisation create a blurry picture for equities and fixed income.

Finally, exposure to gold and silver (commodities or miners) together with emerging market regions that have low dependency on the US dollar or US trade policies should enhance portfolio diversification.

Our long-term thesis for higher rates and higher equities remains unchanged, but we find it prudent to remain on our neutral positioning for April.

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Founded as a London-based wealth boutique in 2013, today we’re a diversified financial services firm with an international presence and our own bespoke technology platform.

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