Article by Masahiko KUMADA
An article about the impact on the financial markets.
What has changed since the impact?
Though the stock market fell sharply right after the outbreak. It did not take long for the market to recover after economic and financial measures were taken by various countries. Now, major changes have emerged in the trends of individual investors. A shift from deposits to securities due to low-interest rates around the world was one of them. As more cash flowed into the securities market, the number of individual investors opening securities accounts increased dramatically worldwide. There has also been a remarkable increase in the number of investment funds. Many hedge funds have stopped accepting new funds after considering the efficiency of their operations due to the rapid growth in assets under management.
In the midst of such an influx of funds into the securities market, people attach a high value to focus on its diversity. While funds have shown overwhelming performance by concentrating on few assets, there is also a demand for alternative investments that provide more stable returns and invest in assets that complement the stock market, such as classic cars, watches, antique coins, and whiskey.
What do we have?
We currently have three proprietary funds. But plans to consolidate them into a single fund (Satellite Growth Fund) in the near future. The Satellite Growth Fund is basically a 50:50 (subject to change depending on circumstances) combination of interest rate arbitrage and FX trend-following. By combining the stability of arbitrage with the trend-following income, the fund has been able to achieve stable performance and has been unaffected by major stock market declines; such as the Lehman Shock. We believe that including this fund in an investor’s portfolio will contribute to raising the overall Sharpe ratio.
In addition, as per our policy, we would like to offer investors a variety of diversified investments. We believe that a variety of investment targets will emerge in the future. Not just cars and watches as mentioned above. We believe that these ideas will not come from our company alone. But it will spontaneously arise from the ideas of each person involved in investment. By sharing these ideas, we would like to support the formation of diverse and innovative funds as another business.
Masahiko KUMADA
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