Value

Value versus Growth

Target

✔ hedge against inflation
✔ value stocks become more valuable; and in better position for price increases
✔ favorable risk/reward for Value stocks
✔ a partial hedge in an equity market correction

Descriptive

The US Federal Reserve (FED) announced to tighten its monetary policy and increase the interest rates. We see various scenarios in terms of frequency and magnitude of the interest hikes. The direct effect on corporates is the cost of capital increase. Such is causing pressure on corporate finances and profitability.
Considering the above, we see the shift in favoring «value companies» over «growth companies». Reason is that growth companies (the technology sector) have been the direct beneficiary of the past easy monetary policy (2020−2022). With the change of monetary policy, growth companies are confronted with higher cost of refinancing and the potential of economic distress.
We see investor’s preferences to go Long on «value companies». In challenging environments with rising inflation, it becomes evident that profitable value companies become more attractive, as such companies are rather able to pass higher costs to the consumers.

The graph reflects the decade of the «growth companies» dominance (Nasdaq 100 index) and in relative the decrease of «value companies» until 2HY 2021. We see the formation of a bottom at the end of 2021, with the early signals of a trend reversal and strong upside potential for the strategy at hand.

Technical composition

Long: Value stocks (Vanguard Value Index Fund ETF Shares, Ticker: VTV)
The investment into the VTV seeks to track the performance of the CRSP US Large Cap Value Index, which measures the investment return of large-capitalization value stocks. By such, it provides a convenient way to match the performance of many of the largest value stocks in the United States.
Short: Growth stocks (Nasdaq 100 e-mini Futures)
Nasdaq 100 e-mini Futures is a stock market index futures contract, based on the Nasdaq 100 stock index. The Nasdaq 100 stock index includes the shares of the 100 largest American and international companies as measured by their market capitalization, and does not include the financial sector.

Last updated on 15 june 2022 . Daily update on the issuer's website.

Key Figures

Historical graph of Certificate price

Figures for the last monthSince launch
+11.72%+75.11%

Recent Transactions Examples

Instrument PnL Type of Transaction Currency Price Date
1st.Tranche Buy USD 35.16 03.02.2022
1/2 1st Tranche +58.26% Sell USD +55.64 14.03.2022
2nd Tranche Buy USD 48.97 23.03.2022
1/2 1st.Trance +54.38% Sell USD 54.28 05.05.2022
2nd Tranche +27.17% Sell USD 62.28 17.06.2022

Contacts

To purchase an actively managed certificate Value versus Growth or to ask a question contact us by phone, e-mail, Instagram, Telegram or WhatsApp.