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Access our latest research and insights from the Montaka Investment Team
It’s been five years since we launched our business, in partnership with our friends at Montgomery. And we wanted to take this opportunity to connect with you to reiterate our single clear goal in everything we do. And that is: to maximise the probability of achieving multi-decade compounding of your wealth, alongside our own. We are grateful for the trust you’ve placed in us. And we continue to work hard every day, with our highly-skilled team, to do well for you over time.
The Financial Times recently wrote an article, asking “has Warren Buffett lost his touch”. Do we agree? Read on to know more.
The European Rolling Stock industry is undergoing a rapid transformation as the shift towards automation and driverless technologies force manufacturers to innovate. In this article, we examine how one pure-play manufacturer is faring in the face of this structural trend.
Value investing may seem like a simple concept but it necessitates a very challenging task of estimating the future growth of cashflows over coming decades.
From cancelled flights and cancelled aircraft orders to frenzied air freight markets, the fallout from the COVID-19 pandemic has been unprecedented. Here we outline some of the implications of the coronavirus for different corners of the commercial aviation industry.
While digital might seem ubiquitous, there is still tremendous uptake to come. Outside of standard broadband access, all other digital technologies remain less than 50% penetrated by enterprises.
Explore the interesting concepts of the Modern Monetary Theory (MMT). Under this economic theory, it is explicitly acknowledged that governments who issue debt in their own currency cannot default. Ever. So then why exactly do we need taxes?
Seasoned experts have commented on the stock market risk while it remains disconnected from the real economy. Our latest red flag comes in the slate of equity capital raises that have flooded the market on the back of investor excitement, meanwhile share buybacks are drying up.
An abrupt change in macro liquidity may be occurring with the potential for a vacuum, as the U.S. Federal Reserve slows its bond buying programs just as the U.S. Treasury accelerates issuance. This may mean the liquidity tide created when the Fed commenced it's "unlimited" purchase program, would start going out to sea, and possibly leave behind more organic price discovery in markets.
While overvaluation is a necessary component to a great short, it alone is insufficient to tilt the likelihood of the short position working out in your favor. The danger of shorting such stocks is the immense damage that can be done in the interim from bullish investors having a set of conditions that allows them to remain bullish.
Despite the hindered economic and business activity round the world, the equity markets have continued to rise. This superficially suggests that the equity market does not seem to care about earnings – yet. History shows that in the long run earnings will still matter.
As equity markets continue to rise, investors are slowly getting nervous about the upside potential from current levels over the short and medium terms. We at Montaka do see downside risks in equity markets near-term.
We would love to hear from you. Whether we can help to compound your wealth, or you would just like to learn more, please get in touch.