Argonautica

Professional investors can review published thought leadership and market updates from the Argonaut Investment Team.

‘The real hedging crisis’

“Hedging” has always brought economic progress with controversy. To “hedge” land through enclosure reduced the risk to livestock and secured property rights, a crucial development in the British Agricultural Revolution, but which ultimately also resulted in the loss of common land. When the modern phrase “hedging our bets” was originally used in Restoration England comedy The Rehearsal, the “hedging” concept was already being applied to reducing or mitigating general financial risk through offsetting contrary positions.

“Dubious Purchase Objections”: An Open Letter to Ron Kalifa, OBE, Chairman of Network International Holdings PLC

Dear Mr Kalifa, We understand from the Network International “Business Update” of December 21st and from a separate Financial Times report of December 20th that Freshfields were appointed in late October to investigate the controversial DPO acquisition which was announced in July (and that this has now been publicly disclosed if not yet completed).

The Whiff at WAF: An Open Letter to the Chairman of the Siltronic AG Supervisory Board

Dear Dr. Ohler, I am writing to you in your capacity as Chairman of the Supervisory Board of Siltronic as a concerned institutional investor. Siltronic announced on 29th November that it was in “advanced, near to final discussions on a takeover by GlobalWafers” expecting to lead to “a voluntary tender offer to Siltronic shareholders at an offer price of €125 per share”...

‘Cyclical Rotation and the Pfizer Vaccine’

The size of the style risk move. Monday’s announcement of a “90% efficacious” vaccine from the Pfizer/BioNTech was the catalyst for the biggest 1-day mean reversion in growth vs value since 2009: The growth/value pair trade in Europe delivered (-16%) in a single day (Nov 9th) and another (-7%) the following day (Nov 10th); Monday’s move -16% for the style beta (-22% in the US) was the biggest on record (in 11 years);

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