x

Start investing with a
free Kristal.AI account.

icon

Simple. Secure.

*Error message

Kristal Insights5 Mins Read

Kristal Quarterly: 2021 Q1 Round-Up

The very first edition of the Quarterly Investment Strategy is here! Kristal Quarterly takes place once every quarter to give investors the timely sounding board to relook at their investment strategy.

The two financial professionals from our Investment Committee (IC), Asheesh Chanda, CEO & Founder, along with Head of Trading & Advisory, Thomas Meichl shared their market sentiments to help investors make decisions in managing their portfolio and wealth. 

Themes for 2021

  1. Stay invested for the long term
  2. Hedge to safeguard against volatility
  3. Active rebalancing is critical

The Investment Strategy for 2021

We consolidated outlooks from a sample of major banks and asset managers to give you an overview of the consensus view on the street. The general consensus suggests a positive outlook with regards to Asia stocks and the emerging markets in the current environment. Those markets will remain supported due to the sheer volume of liquidity and stimulus that governments have committed to buoying the economy.

(Source: Kristal.AI)

A myriad of outlooks have taken on diverse positioning in various areas for sectors such as government debt, especially in the hedge fund entities. This is something that can lead to very sharp market moves when these views and assumptions are challenged.

So what can an investor do to mitigate this risk? Two strategies that we are focusing on:

Tail Risk Hedging

Tail risk hedging strategies aim to protect against extreme market moves. Buying hedges in place, which are deep out the money or depending on where you want insurance protection for your portfolio.

E.g. Kristal Founders Fund (Carry++)

The Kristal Founders fund generates returns through model-driven investments as well as tactical trades across rates, credit, equity, volatility, and crypto markets. The portfolio is following an asset allocation approach to achieve stability and consistency of returns. This Fund endeavors to take risk in market selloffs and is using options strategies to maintain hedges against tail risk events. The fund is diversifying by geographies, complimenting investments in US markets with investments in Europe and emerging and developed economies in Asia.

As the market falls, the amount of losses the portfolio bears is reduced significantly, and beyond a certain point, depending on how much hedges you put in place, you actually could have a recovery – similar to what you would do in a tail risk scenario.

This requires very active management, almost on a daily or weekly basis. Furthermore, this strategy cannot be done for a small portfolio.

Investor’s Tip: Outsource this to a professional manager, allocate to a long-short fund or do a tail risk hedged fund.

Active Rebalancing

Rebalancing is also a form of hedging, adjusting the portfolio according to the specific economic phases that you are going through. This is a long-term process and requires constant monitoring of various economic and market drivers.

Different economic phases favor different asset classes and in the last 15-20 years. We are in an unprecedented situation where the correlation between fixed income and equities has strengthened.

The effectiveness of a classic 60-40 portfolio has been at the top of discussions, so one way how investors can achieve hedging in a balanced portfolio is through the introduction of alternative asset classes in their portfolio. This can be done via volatility or FX as an asset class, or even cryptocurrencies that can work as a mitigant against these spikes against volatility.

After the US Election and Biden’s win, we have introduced a small allocation of cryptocurrency in some portfolios that we are actively managing that has acted as a mitigant against the US dollar weakening, post-election, in the light of additional stimulus that the markets have expected.

Investor’s Tip: Achieve hedging in a balanced portfolio through the introduction of alternative asset classes.

Get Started with Kristal.AI

We hope you have enjoyed the article. Feel free to schedule a call with us if you have any inquiries, our investment professionals will get in touch with you soon.

Disclaimer

The materials and data contained herein are for information only and shall in no event be construed as an offer to purchase or sell or the solicitation of an offer to purchase or sell any securities in any jurisdiction. Kristal Advisors does not make any representation, undertaking, warranty or guarantee as to the update, completeness, correctness, reliability or accuracy of the materials and data herein. All opinions, forecasts or estimation expressed herein are subject to change without prior notice. Kristal Advisors and its affiliates accept no liability or responsibility whatsoever for any direct or consequential loss and/or damages arising out of or in relation to any use of opinions, forecasts, materials and data contained herein or otherwise arising in connection therewith.

Other stories you might like

cross
Change your country to India?

You’re now visiting Kristal.AI Worldwide.
To explore diverse offerings in Indian and global products, select India as your country.

ind

India

hkg

Hong Kong

sgp

Singapore

global

Other
Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

< Back Proceed as Private Wealth

Wealth Management Solutions
Accredited Investor Declaration

This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.

An Accredited Investor is an individual
  • Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
  • Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
  • Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)

I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.

Proceed as Private Wealth

KRISTAL PRIVATE MARKET

Easy access to high-potential startups and private companies to diversify and enhance your portfolio.

For investors who want to support innovative businesses and be part of their success stories.

*The range of private investment opportunities will be made accessible post signup.

OVERVIEW

Explore and Identify

Select from a range of expertly curated Pre-IPO deals from across the globe

Efficient Execution

Enabling easy exposure as Kristal.AI takes care of the paperwork involved with a private investment

Only the Best

A ready-made collection of unicorn companies who are challenging incumbents and rewriting the rules of their industry

Success Story

Diversify your portfolio and be part of the success story of a dynamic and rapidly growing unicorn

Contact our Relationship Manager
ALTERNATIVE INVESTMENTS

Diversify your portfolio with exclusive Private Equity, Pre-IPO deals, VC Funds & other investments like Bitcoin, Gold, Hedge Funds and many more.

Kristal fractionalizes difficult-to-access deals and opportunities.

View Alternative Investments

OVERVIEW

Instant Access

A wide range of alternative asset classes such as Gold, Bitcoins, Hedge Funds and many more; readily made available

Risk Management

Enables investments in diversified assets hence spreading the risk

Easy Tracking

Enables you to get a consolidated view of investments in all assets at one place, hence facilitating easy monitoring and tracking

Exclusive Deals

Access to exclusive Venture Capitalist, Startup as well as pre-IPO investment opportunities

Low Investment Tickets

Facilitates fractionalization of investments in deals

Contact our Relationship Manager
FUNDS PLATFORM

Professionally managed funds with active investment strategies, screened for you by our investment committee to diversify your portfolio.

Enabling clients to access exclusive investment strategies.

View Funds

OVERVIEW

Access

Provides Access to Professional Fund Managers

Low Investment Tickets

Facilitates fractionalization of investments in funds

Diversity

A wide spectrum of investment strategies ranging from Arbitrage to Credit to Hedge Funds and many more

Fees

No additional costs are charged by Kristal.AI

Exceptional Performance

Funds with an impressive track record and potential for high profitability

Leverage

Benefits from insights of the expert selection and advisory team

Easy Management

No time consuming management of portfolios

Contact our Relationship Manager
TAILOR-MADE PRODUCTS

Customize products based on your market outlook and specific needs across equities, bonds, gold and more.

For investors looking to enhance portfolio yield based on market views.

*The range of Tailor Made Products will be made accessible, post login

OVERVIEW

Enhanced Earnings

Structures with potential to enhance portfolio yield based on market movements

Customization

Product features can be designed to articulate investor views

Fees

A flat and transparent fee structure like nowhere else

One-Click Access

A single feature ‘Ideas’ enables you to access recently launched and trending market opportunities

Contact our Relationship Manager
BUILD YOUR OWN KRISTAL

Can’t find what you are looking for? Create your own exclusive investment strategy with risk management & periodic reporting.

For seasoned investors who prefer to design their own portfolio.

OVERVIEW

Empowered Investing

Enables clients to create their own custom portfolio based on their unique needs

Unlimited Choice

Access to all possible exchange traded assets

Flexible Management

Flexibility in delegating the portfolio management role to us or actively taking up the day to day investment decisions, in your custom Kristal

Custom Fee Structure

A simple, transparent and a customized fee structure

Access to Expertise

Custom performance reporting as well as advisory support

Contact our Relationship Manager