Risk Control & Alpha

Rezco Asset Management hosted an investment webinar on 16 February 2021, with Chief Investment Officer Rob Spanjaard, Co-Portfolio Manager and Head of Research Simon Sylvester, and Head of Distribution Brian du Plessis presenting views on risk control & alpha. As a South African asset manager, Rezco explains how macro conditions, valuation and risk control shape unit trust and segregated portfolio decisions.

What this webinar covers

This webinar replay covers Risk Control & Alpha and how Rezco interprets current markets for clients seeking risk-adjusted returns. The session focuses on Rezco Global Equity Fund, Rezco Managed Plus, Rezco Multi-Asset funds and related portfolio themes. So as soon as it's, well, there's a bit of inflation, we confront QE and we need to check interest rates, you've got a major crack on the market and the valuations reset.

Key themes discussed

• South African macro and politics
• US elections and policy
• bear markets and recessions
• cryptocurrency
• emerging markets
• equity opportunities

Macro and market context

So as soon as it's, well, there's a bit of inflation, we confront QE and we need to check interest rates, you've got a major crack on the market and the valuations reset. He says, look, while there are un enormous uncertainties, there's a chance that micro macroeconomic stimulus on a scale closer to World War II levels than normal recession levels in which we are still in will set of inflationary pressures of a kind we have not seen in a generation.

Companies, sectors and ideas mentioned

• Apple
• Tesla
• Donald Trump
• Janet Yellen
• Larry Summers
• Federal Reserve
• South African
• Jeremy Grantham
• Wally Wally
• The Goldman Sachs

Rezco's risk and portfolio views

But as a broadly speaking, we think, as, as a big allocation, you think it's carrying a lot of risk for low return and or downside, economic risk around the South African economy. We aiming for the intersection between risk control and alpha, which is risk adjusted returns, which means sometimes we will sit on our hands, particularly this type of market. So the fact that they haven't really done much for quite a long period, we don't, we don't think it's too relevant, from here going forward.