Head of Equity Strategy
Last month we gave an update on our Equity Radar US portfolio, which is basically a portfolio of the 20 best-rated US stocks in our global equity model. In that update we also introduced a global version and today will introduce an European portfolio. The stocks mentioned are not trade recommendations. This update simply reflects the performance of the stocks with the highest ratings in our Equity Radar model.
US portfolio lost terrain in July
The portfolio underperformed the S&P 500 in July driven by weak performance in IPG Photonics, Intel, and F5 Networks. The rebalancing is quite substantial for August with a strong tilt towards IT stocks.
The changes for August are as follows.
Leaving: Applied Materials, Boeing, Expeditors International, HollyFrontier, H&R Block, IPG Photonics, KLA-Tencor, Lam Research, LyondellBasell, Ralph Lauren, T Rowe Price, and Valero Energy.
Entering: ABIOMED, Seagate Technology, NetApp, Accenture, Electronic Arts, S&P Global, Western Digital, Freeport-McMoRan, Skyworks Solutions, Facebook, Intuit, Garmin.
Global portfolio
The global portfolio ended its first month up 2.9% in July but it's still lower than the S&P 1200 Global Index which rose by 3.7%.
The changes for August are as follows.
Leaving: Covestro, ANTA Sports, Dali Foods, Japan Airlines, Anglo American, Boeing, BankGuam, Mineral Resources, Magnitogorsk, Persimmon, Sinopec Shanghai Petrochemical, Severstal PJSC, and Siltronic.
Entering: Ecopetrol, Howden Joinery Group, ABIOMED, Whitehaven Coal, F5 Networks, Boliden, a2 Milk, Rightmove, Crown Resorts, Nine Entertainment, Seagate Technology, Mastercard, and Great Portland Estates.
Basically all Chinese stocks went out of the top 20 except Foshan Haitian Flavouring. All Russian equities also went out of the top 20.
Introducing our EU portfolio
The European portfolio starts with the following positions. There is a clear overweight of UK stocks in the portfolio which increases the currency risk as the portfolio is denominated in EUR. However, with EURGBP rejecting the highs from March the GBP might be a positive factor for the portfolio in the short term.
A new fragmented world order can render some of today's infrastructure obselete, but it also calls for massive new investments across the globe, which requires a new set of strategic and tactical investment strategies.
Steen Jakobsen,
Chief Investment Officer
As globalisation turns to fragmentation, China seems set on playing a role in the global economy, while simultaneously working towards proofing its own economic situation from external shocks and crises.
Redmond Wong,
Market Strategist
The recent bank runs and ensuing challenges are reminicent of something we've seen before. Will it end like the S&L crises of 1986 and 1995?
Chris Dembik,
Head of Macroeconomic Research
Equity markets need to recalibrate to another - fragmented - global world. What's your view on equities in this market - are they going up or down?
Peter Garnry,
Head of Equity Strategy
With every development comes new opportunites, some of which could be in India. Have you considered the country as a part of your diversification strategy?
Charu Chanana,
Market Strategist
A collar is an option strategy that allows some protection while maintaining some upside potential. What investment would you like to use a collar strategy for?
Hans Oudshoorn,
Trainer Academy
There are arguments to be made for many commodities to have upside. Which are you paying the most attention to this quarter?
Ole S. Hansen,
Head of Commodity Strategy
In a very challenging macro environment, which currencies do you think will come out on top?
John J. Hardy,
Head of FX Strategy
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