Global StockPicker Q2 2017 Commentary

Instruments traded:Single Stock CFDs
Asset Classes:Global Equities
Investment Style:Fundamental Analysis, Dynamic Risk Allocation
Quarterly Return:-4.35% (net of fees)
Q1 2017 daily return volatility:1.07% 

Market Overview

Equity markets fell -2.45% in EUR (as per the benchmark MSCI World ex EM) during the second quarter (Q2) of 2017, resulting in a positive year-to-date return of 2.3%. Q2 market development was led by disappointing political execution from the newly elected US president, Donald Trump. This follows after the equity market embedded (part of) the benefits of his election program during the latter part of 2016 and early part of 2017. The value of the US Dollar fell -6.5% against the EUR as a consequence. At the same time, political disintegration risk fell substantially in Europe on the back of the election outcome in France.

Portfolio Performance

Having ended the last quarter at a high point, the Global StockPicker portfolio started Q2 with a slight downturn. Despite recovering performance several times, the significant market movement at June-end meant the portfolio ended the quarter down -4.35%, underperforming the benchmark by 1.65%. For the first half of 2017 the return of the portfolio is up 3.6%, outperforming the benchmark return of 2.3% after deducting costs:

  • The average leverage ratio during the second quarter was x1.7 commitment, contributing most to the negative portfolio return, given the declining market development.
  • Portfolio return (excluding leverage) was equal to market return
  • CFD costs detracted approximately -1%

Best performing positions

  • Novo Nordisk is a Danish pharmaceuticals company mainly specialising in products for the treatment of diabetes. Its stock price rose 16.4% as market fears for pricing pressure on their core insulin products, subsided. The stock also benefited from the release of better than expected performance data for the new long acting insulins, where the strategy manager is expecting their future growth to come from.
  • Nokia, the Finnish mobile network provider, rose 9.8% as the equity market has started to build expectations for deployment of 5G cellular networks. The company also positively settled their patent litigation issues with Apple.
  • Oracle, US listed, benefitted from database services moving to the cloud. This is despite some news that the equity market has doubts over Oracle’s ability to capitalise on this trend. During the quarter the position rose by an additional 12.9% in US Dollar terms, having already risen by 16.8% during the first quarter.

Worst Performing positions

  • Pandora is a Danish listed producer of affordable luxury jewellery. Its stock price fell -21.3%, as five hedge funds took record-level short positions against the company. These short positions were added due to a lack of belief in the longevity of the life-cycle for Pandora’s main product (charms for bracelets), and that the company will soon face rapidly declining growth rates, including an imminent profit warning for 2017. The strategy manager does not subscribe to this negative view and has raised the weight of the position in the portfolio.
  • Petroleum Geo-Services is a Norwegian listed provider of off-shore seismic services. Whilst it would benefit from the oil price returning to USD 60-70 a barrel, it fell by -36% as the equity market questions OPECs ability to balance the oil market with production cuts.
  • Akamai Technologies is a US listed provider of internet routing optimisation and security services. It fell by -16.5% as it announced it will enhance its position by making acquisitions.


In the third quarter of 2017, the strategy manager for Global StockPicker expects equity markets to incur a period of consolidation until there is more clarity on central bank bond tapering and interest rate normalization priorities. However, any market setback is expected to be short lived due to the lack of attractive alternative, liquid investments. Setbacks may be initiated by political issues from either lack of progress on President Trump’s agenda, or central bank announcements on greater than expected urgency in normalizing monetary policies in the developed world. Indeed, the market’s expectation for Trump to deliver has already substantially deteriorated.

Any information found in this document, including performance information and statistics are subject to change. You can find the latest updated pricing information on the description page for each available portfolio. In providing this material Saxo Bank has not taken into account any particular recipient’s investment objectives, special investment goals, financial situation, and specific needs and demands and nothing herein is intended as a recommendation for any recipient to invest or divest in a particular manner and Saxo Bank assumes no liability for any recipient sustaining a loss from trading in accordance with a perceived recommendation. All investments entail a risk and may result in both profits and losses, and all capital is at risk. In particular investments in leveraged products, such as but not limited to foreign exchange, derivatives and commodities can be very speculative and profits and losses may fluctuate both violently and rapidly. Speculative trading is not suitable for all investors and all recipients should carefully consider their financial situation and consult financial advisors in order to understand the risks involved and ensure the suitability of their situation prior to making any investment, divestment or entering into any transaction. Any mentioning herein, if any, of any risk may not be, and should not be considered to be, neither a comprehensive disclosure of risks nor a comprehensive description of such risks. Any expression of opinion may not reflect the opinion of Saxo Bank and all expressions of opinion are subject to change without notice (neither prior nor subsequent).

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15

Contact Saxo

Select region


Trade responsibly
All trading carries risk. Read more. To help you understand the risks involved we have put together a series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. Read more

This website can be accessed worldwide however the information on the website is related to Saxo Bank A/S and is not specific to any entity of Saxo Bank Group. All clients will directly engage with Saxo Bank A/S and all client agreements will be entered into with Saxo Bank A/S and thus governed by Danish Law.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.