Misty Woodland

Exploring the frontiers of calculated risk

Seres is a global investment management firm specializing in equity, fixed income and derivative strategies

 

Thoughts from the Edge

 

Currency volatility is stirring from a deep slumber as risk-free rates plummet, inflationary expectations wane, and quantitative easing is withdrawn. How should we think about currency relationships in this context and what is the significance of recent yen volatility? 

Economic orthodoxy and the vast majority of marketing pitches for EM investment products share the assumption that capital naturally flows from rich countries with relatively low marginal return on capital to poorer countries with theoretically higher potential returns. The fact that capital does not, in fact, behave according to this assumption raises questions about traditional measures of risk and return in emerging markets.

Portfolio managers from Seres and other specialist funds discuss the investment themes and pitfalls most relevant to prospective investors.

It is tempting to be distracted by mainstream media's tautological hair-splitting on micro-trends in economic, trade, and earnings statistics. In a world that is most likely to generate modest but not disastrous growth in coming years, we can add the most value by thinking methodically about how the internal structure of equity markets is likely to change in an economically and geopolitically ambiguous climate.

About us

Seres was founded in 2009 and is licensed by the Hong Kong Securities and Futures Commission to conduct Type 9 Asset Management activities

Train Crossing Bridge
 

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