- Interestingly, but not surprising, Europe leads in terms of sustainable strategies as a percentage of inflows.
- US is starting to catch up but Asia lags well behind.
Stocks
Interesting, and often contrarian, Snippets on individual companies and the stock market.
Nike Amazon Searches
- This is a testament to the power of Amazon as the start of product searches, as well as the recognition of Nike’s brand.
- Despite Nike stopping selling any products directly on Amazon, its search rank on Amazon has not changed.
- From the always excellent Marketplaces Pulse – Market Places Year in Review 2021.
10 Baggers – UK vs US
Earnings and Market Cap Share
- Useful chart from MRB plotting a sector’s percent share of total US market capitalisation on the x-axis and percent share of total market earnings on the y-axis.
- It of course misses a lot of elements (e.g. growth of earnings, returns etc) but is still worth thinking about.
Energy Intensive Investment
- Nice chart comparing the level of investment by industry forecast for 2022E against its ten year average (Source: JPM).
- Energy-intensive industries have seen a collapse in investment.
- This sort of data is supportive of Einhorn’s thesis and the capital cycles idea popularised by Marathon Asset Management (here and here).
Small Brands
- Small consumer brands tend to beat large brands in the online world.
- Source: The New Consumer 2022 Report (lots of good slides here).
Sector Weights
- Interestingly US Private Equity has a much higher weighting in Tech than the Russell 2000.
- Source: JPM Guide to the Markets Q4 2021.
Banks vs Fintechs
DUC Inventory
- Drilled but uncompleted (DUC) well inventory (a form of hidden oil inventory) has almost normalised in the US oil patch.
Emerging Market Stocks
- Surprisingly, EM stocks make up the majority of the top 50 best performing stocks in the MSCI All Country World Index (ACWI).
Europe
- European equities relative to the US (blue) have largely followed relative earnings (orange).
- The latest readings suggests we should see an improvement in price action.
Oil Patch Borrowing Base
- Another key variable holding back capital expenditure in the US oil patch – lenders.
- Although borrowing bases are increasing it is only by 10-20%, likely not enough to recover the pandemic related drop.
- Source: HaynesBoone Survey.
Medical Waiting Lists England
- Treatment waiting lists have ballooned thanks to the pandemic – suggesting a lot of pent up demand for healthcare.
SPX around Hiking Cycles
- Historic stock performance of the S&P 500 around hiking cycles.
- Market usually softens 9-10 months after the first rate hike and lasts ca. 12 months.
Starship
- Starship, the fully reusable rocket under development by SpaceX, is a revolution the industry grossly under-appreciates. So goes this fascinating blog post.
- “Starship matters. It’s not just a really big rocket, like any other rocket on steroids. It’s a continuing and dedicated attempt to achieve the “Holy Grail” of rocketry, a fully and rapidly reusable orbital class rocket that can be mass manufactured. It is intended to enable a conveyor belt logistical capacity to Low Earth Orbit (LEO) comparable to the Berlin Airlift.“
- “Consider the two critical metrics: Dollars per tonne ($/T) and tonnes per year (T/year) … Starship is intended to reach numbers as low as $1m/T and 1000 T/year for cargo soft landed on the Moon. Apollo achieved about $2b/T and 2 T/year for cargo soft landed on the Moon.“
- It is developing in leaps – “Two years ago Starship was a design concept and a mock up. Today it’s a 95% complete prototype that will soon fly to space and may even make it back in one piece.“
Online Audio Brands
- Awareness of online audio brands in the UK.
- Source: The Infinite Dial (lots of other useful data).
Biotech Year in Review
- Excellent review by Bruce Booth, partner at Atlas Ventures, of 2021 Year in Biotech.
- It covers the impact of the pandemic (both good and bad), current pipeline (5,000 compounds, $180bn of R&D spend), policy picture, the abundance of capital against constrained talent (here and 25:30) and so much more!
UK Inbound Private Equity
- Bids from private equity into Europe, and especially the UK, are on the rise with 2021 seeing a record year (almost rivalling 2006 in value terms).
- H/T 361 Capital.
SaaS Unlocks Software Use
- Latest annual presentation is out from Benedict Evans.
- Absolutely worth a look as it nicely covers macro and strategic trends from the tech industry.
- This chart shows how software as a service (SaaS) has pushed up the amount of software companies can use (as there is no need to get IT to install/support/configure new applications).
- The move to cloud delivery for software has miles to go (it is just 10-15% of enterprise IT spend and 20-30% of workloads).
E-commerce Heat Map
- Nice heat map of the various business models employed by the world’s largest e-commerce companies.
- Source.
