Novacap Asset Management – Investment strategy – 10/11/2016

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With the high level of uncertainty of last months events, NOVACAP has progressively shifted the asset allocation of its clients to defensive strategies and reduced the beta exposure of most portfolios.

Also in these difficult times politically driven, most long short have proven not to been able to generate alpha.

All in all most portfolios have outperformed most developped markets, eventhough it is difficult to generate stable positive returns every month…

Prior the US elections and finally Trump’s election, we emphasized this movement by addition pure alpha strategies in the portfolio, mostly global macro and market neutral funds.

When we look at the below chart, announcing the future political events that will happen in the short run, we believe this is the right move to do…besides keeping some cash to anticipate further markets declines and the quest for a good entry point. Especially the Italian referendum might be a second wave of Brexit, creating a new case for other populists in other countries to create uncertainty.
Calendar of future political events
Italian referendum polls
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Investment Committee

Investment Committee

NOVACAP Asset Management

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