Season Investments

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INSIGHTS

The Troika Has No Clothes

Posted on Oct 16, 2012

Decision makers in Europe would be hard pressed to admit they believe Greece will grow its way out of debt, yet they continue to finance the problem that is Greece. How do these two things reconcile in the real world?

Thermonuclear Patent Wars

Posted on Oct 9, 2012

A wave of strategic patent acquisitions over the past 18 months bear witness to the “patent arms race” that is ensuing as technology companies scramble for ways to defend their intellectual property (IP). We became fascinated with this burgeoning trend a little over a year ago and have continually asked ourselves how we might be able to position our clients to profit from it.

Shanghai Hanging Low

Posted on Oct 2, 2012

The global slowdown and specific concerns over China’s economy have resulted in Chinese equities being one of the worst performing markets this year. This weakness largely reflects the market’s uncertainty surrounding the soft or hard landing debate. We believe the underperformance has left China’s market very attractive from a valuation standpoint.

Trading Sardines

Posted on Sep 25, 2012

A couple weeks ago Realty Income Corp announced it would be acquiring American Realty Capital Trust. Although we understand the reason for the sale, we are disappointed with the terms of the deal.

Pour Some Sugar On Me

Posted on Sep 18, 2012

QE3 will have no real impact on economic growth since it will not loosen any of the “binding constraints” preventing growth from accelerating. The pop in stocks and commodities following the Fed’s announcement has been referred to over and over again as the “sugar rally”, making it analogous to the surge of nervous energy one gets after indulging in too many sweets.

3 Questions for Alternative Investments

Posted on Sep 11, 2012

The universe of what is considered an alternative fund is vast and growing. Three primary questions need to be answered when considering a new investment in this space.

We Are All Turning Japanese

Posted on Sep 4, 2012

We decided to close out our position in the Yen because our thesis for the original investment has been significantly challenged. The tailwinds which have aided the Yen over the past two decades are weakening.

Value Investors & Quants Unite

Posted on Aug 28, 2012

A strategy that is market neutral takes both long and short positions in order to reduce the impact of the market while capturing the relative performance spread between the long and short portfolios. If executed correctly, market neutral strategies exhibit no correlation to stocks or bonds while delivering a unique return stream based purely on the manager skill.

Staying Flexible

Posted on Aug 21, 2012

A true alternative fund doesn’t always have to maintain low-correlation to the equity market. It just needs to be flexible enough to not be correlated at the right times.

Having Your Cake & Eating It Too

Posted on Aug 12, 2012

The improving fundamentals in emerging markets versus the deteriorating fundamentals in developed markets are primarily due to the different stages of the economic life cycle. Many emerging markets have made some tough, long-term decisions to bring their financial houses in order and are now reaping the benefits.

The Definition of a Bad Economist

Posted on Aug 7, 2012

American fiscal policy today seems more intent on delivering "heroics" than "healing". The upcoming Fiscal Cliff presents yet another moment of truth for the US Congress as it decides what to do with roughly half a trillion dollars of scheduled spending cuts and tax increases.

Will the ECB go for Gold?

Posted on Jul 31, 2012

It has long been debated to what extent the ECB will be willing (or even legally capable) of engaging in outright bond purchases of Eurozone countries’ sovereign debt. Such programs have already been implemented throughout this crisis, but such efforts have been limited and have fallen short of anything akin to the US Fed’s quantitative easing programs.