Author Archive

Miles said:

Fund Positioning 30_09_2014

Thursday, October 2nd, 2014

Miles said:

Fund Positioning 31_08_2014

Tuesday, September 2nd, 2014

Miles said:

Fund Positioning 31_07_2014

Friday, August 1st, 2014

Miles said:

Fund Positioning 30_06_2014

Wednesday, July 2nd, 2014

Miles said:

Fund Positioning 31_05_2014

Tuesday, June 3rd, 2014

Miles said:

Fund Positioning 30_04_2014

Friday, May 2nd, 2014

Miles said:

Three things caused me to raise an eye brow this week:

 

  • An email that came across my desk this morning from a major investment bank stating “The Fed now holds almost 40% of long Treasuries” (long term being defined as 5+ years). My immediate reaction was what are the implications for the USD and where is the true underlying level of economic activity given this distortion.

 

  • The price Transurban are prepared to pay for Queensland Motorways. It struck us as a massive one way bet on low interest rates; a bet on a yield curve construct that we perceive as being held at artificially low and unsustainable levels

 

  • Bank of America disclosing an error in their capital calculations requiring them to cancel their proposed buy back and dividend increase. I think it is a mistake to dismiss this as a non event. The error has persisted for 5 years at one of the largest bank s in the US. I find it hard to fathom, given their resources, how such an error occurred; I find it even harder to reconcile how it has persisted for five years given the focus on bank capital requirements. We will never know all the facts but my reaction is it looks like one big cockroach. They rarely exist alone.

 

Our focus has been on identifying a group of businesses we regard as being desirable assets to own longer term regardless of the environment that eventuates. We think markets will provide us with an opportunity to invest capital in these businesses at lower prices. To date we have been patient, waiting for suitable entry points. This patience has not hurt the fund’s performance. The cash we hold provides us with a significant degree of flexibility to enable us to aggressively invest capital where we identify opportunities. We regard this flexibility as valuable in the current environment.

Tuesday, April 29th, 2014

Miles said:

Fund Positioning 31_03_2014

Tuesday, April 1st, 2014

Miles said:

Long Tail Asset Management Review _ 2013

Thursday, January 2nd, 2014

Miles said:

Fund Positioning 01_11_2013

Monday, November 4th, 2013

Yes or no?