Sanostro | Sanostro in the News
Sanostro AG is specialized on Systematic Overlay Management.
Risk Management, Downside Protection, Systematic Overlays, Risk Overlays, Quantitative Trading, Hedge Funds, CTA
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Sanostro in the News

Notes on a Successful Tail-Hedge Strategy

Find the article here.

This article features an interview with Sanostro. “If downside protection was your aim and you were fully hedged against the S&P 500 by 2016’s second day of trading, then, firstly, congratulations. Secondly, might we ask how, precisely, were you able to pull off such a deft tactical move? This question was posed to Sanostro, who’s taking something of a victory lap these days. They are feeling confident having advised, essentially, a “risk off” call starting in early January and lasting until early March. Firm founders insist that what they do works better timing-wise than gut feelings or fundamentals.”

 

The Huge Implications of Cheaper Oil Examined

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The outlook for oil has been a recent discussion topic for investors, shown in this Q&A thread. The fall in the price of oil to a low of $27/barrel has hit oil-dependent countries and energy producers, as well as adding deflationary pressures to the global economy.
Uncertainty around the price of oil has increased geopolitical tension and raised political risk, which will also be affected by Brexit, the refugee problem in Europe and the US election during 2016.  At its current valuation, oil is an investment opportunity according to some experts, but they warn that oil ETFs may not be the best way to play it.

 

Loonie – Opportunity of the Year

Find the article here.

Did you know that large parts of Canada have less gravity than the rest of planet earth? Sadly, this random fact does not apply to the country’s currency over the past three years. If anything it feels like there’s more, not less gravity on the Loonie than any other G7 currency in the world. Yet, if you’re opportunistic, and believe in a rebound of oil, the CAD could be an interesting way to play it.

 

“Oft denkt man zu spät an eine Absicherung”

 Find the article here.

Vincent Couson is interviewed by the Neue Zürcher Zeitung (NZZ) about the importance of risk management.

 

Prepare for the Bear While You’re Running With the Bull

Please find the article here, as well as a clip on the topic here.

The current bull market is now in its 80th month. In other words, the rally that started in March 2009 is now the third longest bull market in history, and is proving to be quite resilient. For now, only two other bull markets have outrun it: The great stock marathon that began after the savings and loan crisis in 1990 (that was subsequently interrupted by the Russian Debt Default and LTCM) and the Cold War run, from 1949 – 56.

The graph in this article compares the duration of the current bull market with previous ones for the S&P 500 and the investment gains over the 13 longest bull periods with what was lost in the following bear market (assuming one stayed fully invested throughout).

The average bear market wiped out more than 70 % of the investment gains from the previous bull market.

 

Can Market Signals Tell You When to Hedge? 

Access the Investor Intelligence Network to read the article here.

For investors looking to use downside protection on a cost-effective basis, implementing a hedge via index futures is a good option. But deciding when to implement the hedge is a critical decision. Sanostro recently detected market signals indicating that investors should move to a fully hedged position. The signal was triggered on August 21, 2015, at an early stage of the current market turmoil. This meant investors using its signals were protected on August 24, when equity markets incurred significant losses.​ To get a little more detail on how the signals Sanostro uses work, IIN recently spoke to Walter Brägger.

 

From Risk-Averse to Avant-Garde – Innovative Hedging Helps FO Boost Equity Exposure

Access the Investor Intelligence Network to read the case study here. 

When a Zurich-based next gen inherited nearly €100 million in assets, his natural scepticism and risk-sensitivity kept him largely in cash for several years. Only the market crash of 2008 – and the appetizing investment prospect it generated – persuaded him towards risk assets. Yet a mere six years later he invests around 90 percent of his portfolio in equity, despite relatively high valuations.

What has enabled this extraordinary transition? One key factor is an innovative downside protection strategy that gives him confidence without giving away too much in fees. “If I didn’t have this, I wouldn’t have more than 50 percent of my assets in equities right now,” he says.