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Insight - Making Sense of the Narrative


A new government and a crisis mini-Budget are perfect catalysts for macro traders to double down on existing large and already highly profitable strategies and to produce persuasive narratives to back it up. Thus, going into month and quarter end...

Bringing together our series on Model Portfolios, we show how a balanced 60:40 Portfolio of Equities and Bonds based on our Global Bond Model Portfolio combined with either our Global Equity Factor Model Portfolio (Portfolio 1) or our Global Equity Theme Model Portfolio (Portfolio2) show different risk return profiles, but both show better returns with much lower risk than the benchmark.

Central to Market Thinking is the notion that there are Three Tribes at work in markets – the short term leveraged traders, the medium term asset allocators and risk managers and the long term investors.

In this note, we look at how we can construct a different Global Equity Model Portfolio using the same process of Conviction Scores and Dynamic Allocation, but looking instead at a diversified portfolio through the lens of ‘Global Themes’.

Thursday 8th September will be one of those days we all remember where we were when we heard, the day the UK lost a Monarch and the world lost a Queen. It is, quite literally, the end of an era.