
Weekly Newsletters
07 May 2021 | William Buckhurst
That Was The Week That Was
MACRO
- In the UK, a very strong showing from the Conservative party in the Hartlepool by-election and other local elections reinforced the majority that Boris Johnson’s government currently enjoys
- Unusually for a Treasury Secretary, Janet Yellen, the former Governor of the Federal Reserve, commented on the prospects for higher rates in the US
- US employment figures came in much weaker than expected with just 266,000 new jobs last month and the unemployment rate edged up to 6.1%
STATISTIC OF THE WEEK
This week saw the death of David F Swensen, the pioneering manager of Yale’s endowment fund. Swensen took on the fund in the mid-1980s, when he was in his early 30s and the endowment stood at $1.3bn. In the decades to come, he won international renown for an approach to investing that emphasized diversification beyond listed equities and bonds, especially through the use of illiquid alternative assets.
Over his 35-year stewardship, the fund generated returns of 13.1% per annum, outperforming the Cambridge Associates mean by 3.4% and a traditional 60% stock/40% fixed income portfolio by 4.3% per annum. In dollar terms, Yale’s performance during Swensen’s tenure translates into gains of $45.6bn. The endowment is now more than $31bn and spending from it covers one-third of the university’s budget.
COMPANY NEWS
- PayPal reported Q1 results ahead of expectations and 50% yoy growth in total payment volumes
- Linde closed the week higher after reporting first quarter results with revenue rising 7% yoy to $7.2bn
- Novo Nordisk saw Q1 EBIT rise 3% and sales rise 7%, ahead of consensus estimates, whilst management highlighted sales growth across all geographies
FUNDS
At the Berkshire Hathaway AGM, Warren Buffett sounded the alarm on inflation and admitted his mistake over selling his airline investments last year. After many years of anticipation, Greg Abel was revealed as his successor. The Canadian runs the group’s sprawling portfolio of non-insurance investments, which include the Burlington Northern Railroad and Dairy Queen ice cream. He also sits on the board of Kraft Heinz, of which Berkshire is a big shareholder.
SMALL-CAP NEWS
It was good to see Victoria plc getting ready for BBQ season with the acquisition of Edel Group, which is a Netherlands-based manufacturer of artificial grass and carpets. The former is key to making sure rain doesn’t stop play
THIS WEEK IN HISTORY
1915: German submarines sink the Lusitania, the same ship that had brought $7m in gold to help restore the US financial system in 1907
2010: The “Flash Crash” causes the Dow Jones index to fall 6% in just a few minutes, at one point down 9%, triggering a renewed focus on ETFs whose prices became disconnected from their underlying holdings
RE-OPENING TIMES
A new Moody’s Analytics report shows Americans have accumulated excess savings of $2.6tn since the start of COVID which should power a spending boom to boost the economy
MARKET DATA
% returns |
1 Week |
1 Month |
1 Year |
5 Years |
UK Equities (% return GBP) |
1.75 |
3.25 |
22.07 |
37.09 |
World Equities (% return GBP) |
0.17 |
1.89 |
31.39 |
110.11 |
10 Year US Treasury Yield (%) |
1.58 |
1.68 |
0.63 |
1.79 |
GBP / USD (fx rate) |
1.40 |
1.37 |
1.24 |
1.44 |
As at 7th May 2021. Source: Financial Express
This publication has been produced by Vermeer Investment Management Limited (VIM) trading as Vermeer Partners. It is provided for information purposes only. VIM makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to any data included in this publication. VIM will not treat unauthorised recipients of this publication as its clients. Prices shown are indicative and VIM is not offering to buy or sell or soliciting offers to buy or sell any financial instrument. Without limiting any of the foregoing and to the extent permitted by law, in no event shall VIM, nor any of its officers, directors, partners, or employees, have any liability for (a) any special, punitive, indirect, or consequential damages; or (b) any lost profits, lost revenue, loss of anticipated savings or loss of opportunity or other financial loss, even if notified of the possibility of such damages, arising from any use of this publication or its contents. Other than disclosures relating to VIM, the information contained in this publication has been obtained from sources that VIM believes to be reliable, but VIM does not represent or warrant that it is accurate or complete. VIM is not responsible for, and makes no warranties whatsoever as to, the content of any third-party website referred to herein or accessed via a hyperlink in this publication and such information is not incorporated by reference. The views in this publication are those of the author(s) and are subject to change. VIM has no obligation to update its opinions or the information in this publication. This publication does not constitute personal investment advice or take into account the individual financial circumstances or objectives of the client who receives it. Any securities discussed herein may not be suitable for all investors. VIM recommends that investors independently evaluate each issuer, security or instrument discussed herein and consult any independent advisors they believe necessary. The value of and income from any investment may fluctuate from day to day as a result of changes in relevant economic markets (including changes in market liquidity). The information herein is not intended to predict actual results, which may differ substantially from those reflected. Past performance is not necessarily indicative of future results. This material has been issued and approved for distribution in the UK by VIM.
©2021 Vermeer Investment Management Limited. All rights reserved. No part of this publication may be reproduced or redistributed in any manner without the prior written permission of VIM. VIM is authorised and regulated by the Financial Conduct Authority (FRN: 710280) and is incorporated in England and Wales (company number: 09081916).
Other Recent Weekly Newsletters
That Was The Week That Was
13 May 2022
That Was The Week That Was
06 May 2022
That Was The Week That Was
29 April 2022
That Was The Week That Was
22 April 2022
That Was The Week That Was
15 April 2022
That Was The Week That Was
08 April 2022
That Was The Week That Was
01 April 2022
That Was The Week That Was
25 March 2022
That Was The Week That Was
18 March 2022
That Was The Week That Was
11 March 2022
That Was The Week That Was
03 March 2022
That Was The Week That Was
25 February 2022
That Was The Week That Was
18 February 2022
That Was The Week That Was
11 February 2022
That Was The week That Was
04 February 2022
That Was The Week That Was
28 January 2022
That Was The Week That Was
21 January 2022
That Was The Week That Was
14 January 2022
That Was The Week That Was
07 January 2022
That Was The Week That Was
17 December 2021
That Was The Week That Was
10 December 2021
That Was The Week That Was
03 December 2021
That Was The Week That Was
26 November 2021
That Was The Week That Was
19 November 2021
That Was the Week That Was
12 November 2021
That Was The Week That Was
05 November 2021
That Was The Week That Was
29 October 2021
That Was The Week That Was
22 October 2021
That Was The Week That Was
15 October 2021
That Was The Week That Was
08 October 2021
That Was The Week That Was
01 October 2021
That Was The Week That Was
24 September 2021
That Was The Week That Was
17 September 2021
That Was The Week That Was
10 September 2021
That Was The Week That Was
03 September 2021
That Was The Week That Was
27 August 2021
That Was The Week That Was
20 August 2021
That Was The Week That Was
06 August 2021
That Was The Week That Was
30 July 2021
That Was The Week That Was
23 July 2021
That was The Week That Was
16 July 2021
That Was The Week That Was
09 July 2021
That Was The Week That Was
02 July 2021
That Was The Week That Was
25 June 2021
That Was The Week That Was
18 June 2021
That Was The Week That Was
11 June 2021
That Was The Week That Was
04 June 2021
That Was The Week That Was
28 May 2021
That Was The Week That Was
21 May 2021
That Was The Week That Was
14 May 2021
That Was The Week That Was
07 May 2021
That Was The Week That Was
30 April 2021
That Was The Week That Was
23 April 2021
That Was The Week That Was
16 April 2021
That Was The Week That Was
09 April 2021
That Was The Week That Was
02 April 2021
That Was The Week That Was
26 March 2021
That Was The Week That Was
19 March 2021
That Was The Week That Was
12 March 2021
That Was The Week That Was
05 March 2021
That Was The Week That Was
26 February 2021
That Was The Week That Was
19 February 2021
That Was The Week That Was
12 February 2021
That Was The Week That Was
05 February 2021
That Was The Week That Was
29 January 2021
That Was The Week That Was
22 January 2021
That Was The Week That Was
15 January 2021
That Was The Week That Was
08 January 2021
That Was The Week That Was
18 December 2020
That Was The Week That Was
11 December 2020
That Was The Week That Was
04 December 2020
That Was The Week That Was
27 November 2020
That Was The Week That Was
20 November 2020
That Was The Week That Was
13 November 2020
That Was The Week That Was
06 November 2020
That Was The Week That Was
30 October 2020
That Was The Week That Was
23 October 2020
That Was The Week That Was
16 October 2020
That Was The Week That Was
09 October 2020
That Was The Week That Was
02 October 2020
That Was The Week That Was
25 September 2020
That Was The Week That Was
18 September 2020
That Was The Week That Was
11 September 2020
That Was The Week That Was
04 September 2020
That Was The Week That Was
28 August 2020
That Was The Week That Was
21 August 2020
That Was The Week That Was
14 August 2020
That Was The Week That Was
07 August 2020
That Was The Week That Was
31 July 2020
That Was The Week That Was
24 July 2020
That Was The Week That Was
17 July 2020
That Was The Week That Was
10 July 2020
That Was The Week That Was
03 July 2020
That Was The Week That Was
26 June 2020
That Was The Week That Was
19 June 2020
That Was The Week That Was
12 June 2020
That Was The Week That Was
05 June 2020
That Was The Week That Was
29 May 2020
That Was The Week That Was
22 May 2020
That Was The Week That Was
15 May 2020
That Was The Week That Was
08 May 2020
That Was The Week That Was
01 May 2020