BACK TO REALITY—stock prices can rise

I. What is important for fund investors

  • The reporting season—especially in the U.S.—took a promising course. As a result, numerous stocks in the fund (e.g., Adidas, Lam Research, Teck) from all topic areas have experienced steep upward spurts.
  • The temporary slump of the FANG stocks was absorbed quite well by the markets so far thanks to an intense sector rotation. The one-sided, rather emotional focus on few growth stocks has been replaced by a more fundamental perspective.This presents a very healthy change from our perspective.
  • The fund is therefore no longer placed in a waiting position. All hedging through index futures has now been removed.

II. Portfolio adjustments

The biggest change in net terms in July was the significantly increased share of stocks from Switzerland from 22% to 32%.

  • We increased our shares, for example, from the Swiss companies VAT (vacuum) and Lonza (healthcare).

  • In the area of materials, we cut our exposure to Barrick Gold and K + S completely after a disappointing price development. The same was true for Hapag-Lloyd in the area of transportation and movables.
  • The fund investment continues to be concentrated. Our exposure occurs not only through the purchase of stocks. Single-stock futures and options are also introduced selectively. These tools increase flexibility and allow hedging not only through indexes but also for individual stocks directly in the case of a sudden decline.

  • A pleasant side effect of the expansion of the from our perspective interesting participation in sectors and topics—and rooted in the core of our fund concept—was the expansion of investments not held in euro. The strong weighting of the Swiss franc in combination with the British pound sterling, the U.S. and the Canadian dollar contributed to a significantly reduced volatility of the fund price in these past days of turmoil in Turkey.

III. Outlook

  • We are optimistic about the further course of the year. The statistically difficult months August and September can certainly hold unpleasant setbacks for the stock markets. However, from our view this doesn’t change the fact that there will be an upward trend until the end of the year in net terms.
  • Take advantage of this phase to clean out your portfolio. More quality stocks, less illiquid stocks, and a shift in focus toward the late-cycle sectors and topics are a good idea from our perspective.

Georg Oehm

Georg Oehm founded Mellinckrodt & Cie, in Zug, Switzerland, in 2008. He served as general manager and partner in a financial communications boutique in Frankfurt am Main, founded the CFD Association e.V. and served as its first general manager. He worked in business development and in the M&A business at the Metallgesellschaft AG for five years, followed by a five-year tenure in the field of special restructuring projects. From 2011, he was a member of the administrative board at the Zenergy Power Plc and at the Synety Group Plc from April 2011 to January 2016. Dr. Oehm serves as chairman of the advisory board at InCity Immobilien AG. He completed his Ph.D. at the University of Kiel, department of economics and social sciences. He started his career as a banking apprentice at the Dresdner Bank in Frankfurt am Main. Subsequently, he earned a degree in business administration in Mainz and Kiel.

Stay up to date

Sign up to receive the latest news and insights from Mellinckrodt.

You may opt out at any time.

© 2020 Mellinckrodt & Cie. AG ・ Zugerstrasse 74 ・ CH-6340 Baar, Switzerland

Nutzungsbedingungen

Willkommen – Welcome

Zugang zur Website / Access to the website

Die nachfolgenden Informationen sind nur für Personen bestimmt, die ihren Wohnsitz in der Schweiz haben. Mit dem Zugriff auf diese Webseite bestätigen Sie, dass dies der Fall ist.

The following information is only intended for persons who are resident in Switzerland. By accessing this website you confirm that this is the case.