LOCAL OUTLOOK Rezco Asset Management continues to maintain a cautious market outlook. While there is some overlap locally and internationally, we believe that there are predominantly different forces at play. Preserving capital* and creating wealth continues to form the bedrock of our investment philosophy The high local risk-free rate in fixed income instruments means that […]
The strong run by European markets, as well as other markets in general, leading to the Brexit Referendum that occurred on the 23rd of June, reflected that market consensus was for a vote to remain in the European Union. From a pure capital markets perspective, the vote by Britain to leave the European Union is […]
Quality: “The standard or nature of something as measured against other things of a similar kind; the degree of excellence possessed by a thing.” – Oxford English Dictionary definition ‘Quality investing’ has become a popular investment style and a particularly strong selling point of late. As the quote above suggests, measuring quality is, by its […]
The subject of fees The subject of fees has always been debated and even fiercely negotiated between role players in the financial services industry. In this article we will be painting the picture from an angle that we believe investors miss sometimes. To put everything in context we will cover the different components of the […]
At Salvo Capital we are constantly trying to improve communication with our clients. For us to do this effectively we need to understand the psyche of our clients and to accommodate and manage the potential risk that an investor might pose to his/her own investment due to investor behaviour. The intent of this document is […]
Your journey as an investor started with a plan on day one. Uncertainty has the ability to make one forget about the plan which made so much sense initially. It is for this reason that it is necessary to look at the plan and the principles used to construct your portfolio to achieve your goals. […]
Power of Compounding My favourite illustration of the power of compounding growth is the story of what happens when a piece of paper is repeatedly folded in half. At the first fold, the paper doubles in depth. At the second fold it doubles again, to be four times as thick as it was at the […]
Volatility Regarding the recent volatility in the Chinese equity markets and the impact it has had on global markets, we believe there is a significant disconnect between investor sentiment and the underlying fundamentals. Markets have reacted as if conditions are worse than the 2008 global financial crisis, or the Asian financial crisis of 1997 and […]
Gearing strategy Gearing as a strategy in a portfolio is a way to enhance capital growth. This strategy is effective under the following conditions: If the underlying ungeared portfolio consistently manages to outperform the interest rate payable for gearing. The underlying portfolio (ungeared) is consistent in the management of its volatility within a predictable band […]
