IN PURSUIT OF MACRO VALUE

For men may come and men may go,

   But I go on for ever.

(Alfred Lord Tennyson, ‘The Brook’)

Riverrun, past Eve and Adam's, from swerve of shore to bend of bay…

(James Joyce, Finnegan’s Wake)

A THOUGHT EXPERIMENT

• Steering between two currents: Macro and Value.

• Chart a new course.

• Hegelian synthesis between macro and value theses.

• Mirroring these with debt/equity positions.

• By reviewing historical conditions, anticipate macro conditions.

• But with a value investor’s nose for bargains and underpriced securities.

• Not riding trends, rather being attuned to market dynamics/rhythyms with careful risk assessment.

• Controlled flight into political/sovereign risk (ie. Eurocrisis, Middle East, emerging markets) – traditional non-value, macro territory with value emphasis.

• Investment – doctrine of the mean with caveat below.

• Creative drive applied through analytic synthesis.

• Still seeing securities as businesses, not ciphers, or speculative units.

• Expecting, and preparing, for inefficient markets.

• Wise use of leverage. Steering a middle course.

• *Cross-collateralisation/cross-fertilisation of investment Ideas – the two big macro and value ideas.

• Aristotle’s Rational principle of steering the middle course transmuted by ‘Supra-Rational’ outlook on global markets.

• Expect the unexpected..