Investments.
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Vision.
WHAT'S NEW
The dust from the new normal is mostly settled and change is everywhere. From business and operational practices to government policies and cross-border relationships, new approaches are being explored to tame the chaos of COVID-19, often with digitalization in the mix.
The modern investor too must embrace the complexity of this accelerated evolution to successfully journey to wealth.
Stoic Capital is a young and dynamic fund management company with a keen eye on the trends impacting tomorrow.
Established in September 2020 and formally a Registered Fund Management Company from July 2021, Stoic Capital leveraged on the newly established Variable Capital Company (VCC) framework to incorporate Stoicc3 VCC to manage its family of sub funds across both traditional and alternative strategies.
AT A GLANCE
Stoic Absolute Return Fund 1 - SARF1
Macro commodities focused, including crypto and public markets.
Stoic Absolute Return Fund 1
Stoic Capital's inaugural sub-fund managers and deploy funds across asset classes, with commodities by themes to better identify tactical opportunities, such as energy, agriculture and metals.
As always, commodities is a micro play, an asset class whose volatility necessitates data-driven analyses based on both fundamentals and technical. Trading ideas can range from a simple play on the futures curve - whether for crude oil during the implosion of structured products in early 2020, corn on rising Chinese imports or even logs on China's swing from shortage to oversupply on pork - to capitalize on opportunities that generate positive returns from supply dislocations to long term views on peak oil theory.
This emphasis on commodities derivatives is a leverage on the founders' wealth of the trading experience across the various sectors.
Stoic Capital also believe in a few emergent macro trends and will seek out opportunities in these areas in the coming year, such as further building out and adding funds to the stable by pursuing niche opportunities in real estate and venture capital.
Emergent Trends
ENERGY TRANSITION
In the world with growing emphasis on environmental, social and corporate governance (ESG), the transition from fossil fuel to renewable and sustainable source of energy will be no less than messy. Whether this means heightened demand for electric vehicles (are the only about Tesla?) - which in turn leads a demand driven rally in rare earths, nickel or lithium, or a paradigm shift away from coal usage towards solar, hydrogen or nuclear - dislocations are bound to occur, and transitions are never neat.
Distilling opportunities amidst the transition chaos is a key thematic fouc on the fund moving forward.
POPULATION DECLINE
It's not just about the population ageing. It's also about the inevitable decline in population that faces us globally. A growing focus on individuality and individual freedoms sits squarely at odds with a bigger picture of procreation. Overpopulation and urbanization are less significant issues than they were decades ago, with the coming decades likely to be faced with lacklustre demand and a desperate push to increase the fertility rate. With a fertility rate hovering far below replacement rate for developed countries, the implications on labour availability, labour mobility and the resultant technological demand shifts for an ageing and declining population are severe.
For Stoic Capital, the implications are compelling for simple opportunities in medical technology and robotics, amongst other areas.
VIRTUAL REALITIES
For those of us with children, it's hard not to notice (and to worry incessantly) the addictive nature and the increasing exposure of the young to all things digital. But amidst the pre-occupation with all things related to blockchain technology, cryptocurrencies, IDOs and gaming, it is all too easy to dismiss such observations as fads or to get over-excited about the seemingly endless opportunities from such technologies.
Hence, Stoic Capital strives to leverage on hard data driven analyses to monitor and separate the fads from the real trends, be it in the selection of companies or currencies.
Fund 2
Real estate focused, starting with Singapore and then overseas.
(Coming Soon)
Fund 2
Fund 3
Venture capital focuses, from start-ups and private/unlisted companies to those on a longer holding period.
(Coming Soon)