{"id":197,"date":"2021-07-02T11:35:37","date_gmt":"2021-07-02T11:35:37","guid":{"rendered":"https:\/\/sjc.capital\/blog\/?p=197"},"modified":"2021-07-05T10:28:33","modified_gmt":"2021-07-05T10:28:33","slug":"steven-j-cohen-cfa-newsletter-q2-2021","status":"publish","type":"post","link":"https:\/\/sjc.capital\/blog\/index.php\/2021\/07\/02\/steven-j-cohen-cfa-newsletter-q2-2021\/","title":{"rendered":"Steven J Cohen CFA Newsletter Q2 2021"},"content":{"rendered":"\n

Economy & Capital Markets:<\/strong><\/p>\n\n\n\n

In June the US Fed, improved expectations of 2021 growth to 7% and inflation to 3.4% and, indicated that they expect to increase interest rates to 0.6% in 2023, a long way off.<\/p>\n\n\n\n

The PB of China views: resident consumption constrained, problems for small businesses and fiscal imbalances for several regional governments. However, in a refreshing contrast to western bureaucrats, will maintain money supply and leverage in-step with economic growth. It will manage the RMB with reference to a basket of currencies, currency flows and balance of payments. It also seeks to improve bond default resolution and to stabilise land and house prices.<\/p>\n\n\n\n

Kings’ Portfolio (Global Mega Cap Long\/Short Equity Investing):<\/strong><\/p>\n\n\n\n

In the first half the dollar portfolio returned 5.48% with a 0.7 Sharp, whilst the S&P500 returned 14.42% and the ACWI 12.34%. The portfolio suffered a 6% decline in the last month impacted by market rebalancing to accommodate the US Fed’s interest rate expectation. Japanese basic material companies: Tokai Carbon and Ube Industries contributing -1.4% and -1.1% to the fall. US healthcare company Evolent Health and shorting UK technology company Micro Focus also contributed -0.75% and -0.63% with, the portfolio’s natural US dollar short position adding -0.98%. At the end of the period the portfolio held a very conservative 65% in cash.<\/p>\n\n\n\n

Belsize Strategy (Macro & Global Futures Trading):<\/strong><\/p>\n\n\n\n

With the advancement of the firms AI abilities, this long-standing strategy which provided excellent returns during the 2007\/8 financial crisis was restated in May. A small loss was reported, inline with expectations that were impacted by the US Fed’s acknowledgement of a need to bring forward interest rates increases. Operational procedures are developing.<\/p>\n\n\n\n

Private Equity Strategy (Illiquid Investments):<\/strong><\/p>\n\n\n\n

During the period the firm added five position (including reservations) to its first venture capital investment in 2019. Sector breakdown now stands at: 29% media & entertainment, 22% communications, 18% real estate, 18% finance and, 8% food and beverage. The technology breakdown in the portfolio consists of 60% apps, 20% hardware, 10% sharing economy and 10% e-commerce. The firm makes no positive discrimination except for the combination of good ideas and teams, however the initial investment was to a female managed business and, we have further invested in one black and two Latin managed businesses.<\/p>\n\n\n\n

Crypto Currency Strategy (Inter-day Trading):<\/strong><\/p>\n\n\n\n

Due to the rapid development of the firm’s proprietary AI, in June a crypto trading strategy was initiated, across 11 currencies each with a market capitalisation over $1Bn. Operational activities are being fine-tuned to accommodate the AI decision-making within the firms risk limitations. The results were inline with expectations given market conditions, with a small profit. This strategy is not expected to be available for external parties.<\/p>\n\n\n\n

Artificial Intelligence & Technology Development:<\/strong><\/p>\n\n\n\n

During in the first month of the quarter the firm completed its software development target for the year. Apart from further improved accuracy of decision making, a surprising offshoot was increased speed. This has allowed far greater diversification across instruments and time horizons.<\/p>\n\n\n\n

Firm Operational Update:<\/strong><\/p>\n\n\n\n

Since 2015 the firm has been maintained as a Californian Registered Investment Advisor (RIA) within FINRA and SEC USA government oversight. At present the firm’s administrative headquarters are in London, UK; if global travel restrictions return to pre-Covd levels we expect this to be more fluid.<\/p>\n","protected":false},"excerpt":{"rendered":"

Economy & Capital Markets: In June the US Fed, improved expectations of 2021 growth to 7% and inflation to 3.4% and, indicated that they expect to increase interest rates to 0.6% in 2023, a long way off. The PB of China views: resident consumption constrained, problems for small businesses and fiscal imbalances for several regional … <\/p>\n

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