Kings Portfolio Newsletter Q4 2020

Economy & Capital Markets:

Uncertainties in 2020 (Brexit, Covid, US elections, elongation of the economic cycle) have now dissipated. Unemployment remains elevated and inflation absent, permitting central bankers to continue their folly of creating massive wealth inequality through near to zero interest rates, as apposed to increasing the volocity of money. Interestingly governments across the world are now reviewing their policy of encouraging corporate monopolies eg Ant (China) & Facebook (USA), which should assist somewhat in reducing inequality caused by central banks.

Performance:

For the year the dollar portfolio returned 12% with a 1.32 Sharp, equivalent to 75% of the S&P 500 or ACWI gains with an incredible 25% of the volatility. Longs contributed 8.13% and shorts 3.92%. Biggest contribution to gains where positions in Sunrise Communications Group, Sumitomo Metal Mining, GBP, Everaz PLC and Sasol Ltd, whilst we lost on Air Canada, Kawasaki Kisen Kaisha, USD, EQT Corp and Voya Financial Inc.

Development:

Intra & daily trading artificial intelligence was successfully developed. However optimal leverage in trading positions amplify operational risks too great for third parties.

For the firm, the biggest challenge of the year was several vendors unexpectedly modifying software (API). This was overcome in a timely manner though multiple additional techniques to benefit future data access.

Firm:

The firm’s administrative offices return to London from Zurich at the end of January 2021. The firm relinquished its Swiss financial licence and will seek to continue to operate under its Californian financial licence.

Leave a comment

Your email address will not be published. Required fields are marked *