News/Media

The Future Is A Tricky Place

It’s tricksy, as Gollum might say. What might be slowly gives way to what is. In hindsight, our choices end up looking naïve, often over-enthusiastic, sometimes too conservative or, if we’re one of the very lucky few, correct. Not many actually are correct, though. Yet market forecasts multiply in volatile times. With the US equity […]

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Hey Market! You’re Looking Good … For Your Age

Spring might be in the air – but is it autumn in the markets? Opinion is divided. On the one hand, we are now in the longest bull run in modern history and many think it could have years yet to run. On the other, there is a torrent of negative news stories about worsening […]

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Why you should be worried about the JSE

More than two thirds of counters in the ALSI are down for the year to date. In this Moneyweb article, Methodical discusses how only 33% of the 160 stocks in the ALSI are up so far this year. The market is being supported by only a few stocks, and according to Steven van Jaarsveld, Methodical’s […]

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“Sorry, how much until I break even?!”

No two ways about it: realising losses in an investment portfolio is painful. It happens to every investor and forms part of any investment journey. Psychologically, however, we seem ill-equipped to deal with losses. Loss avoidance is one of the most researched investment biases but still one of the most prevalent. All of us have […]

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Bringing technological innovation to investing

Through the ages, every industry has introduced tools, machines and technologies to improve production, automate processes and increase efficiencies. There is always resistance to change and questions raised about the value of the new. But once these innovations have been absorbed, it’s hard to imagine going back to the way things were before. There are […]

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Methodical Semi-Annual Report

Methodical’s Semi-Annual Report for the six months ending 30 June 2018 is now available on our website. This report provides a market summary, as well as detailed analysis on each Fund in terms of investment returns, and specific stocks contributing or detracting from these returns.

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Is That Your Final Answer?

In the financial industry, people are quite taken by the “wisdom of crowds”. It is not a new idea but one that has become increasingly popular, as the number of books written on the subject attest. The phrase is used as short-hand expression to mean that the average collective opinion of a group tends to […]

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Russia 2018 Football World Cup Predictor

The World Cup is here! And with the Cup comes a slew of predictions, odds, bets, forecasts and projections, as well as a healthy dose of prejudice and favoritism. Being a data-driven Investment house, we believe that distance from proximate noise is a good thing. It allows clarity of vision and space to make decisions […]

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Correlation: play safe out there, kids

Correlation can be a dangerous thing. Correctly applied, correlation has the potential to be a powerful tool to help detect relationships between different data sets. Used outside of context, though, correlation can be a false indicator of causation, with potentially disastrous consequences. Worse yet, because correlation matrices are easily calculated based on data, their ubiquity […]

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It’s A Long-Term Game

Everyone knows that they should invest for the long term…and does until they experience losses in the short term. Even the most seasoned and successful investor’s commitment, insight and emotions are tested in times of stress. But short-sightedness is often detrimental to investors. Making hasty decisions and reacting to short-term market developments is a good […]

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“I’ve never seen a bad backtest…”

Everyone in the financial industry has heard these words at some point. As a systematic manager, Methodical knows them all too well. Some investors really do believe that backtests are a complete waste of time – but then what a curious phenomenon that managers expend so much time and energy producing something that will invariably […]

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What Are You Waiting For?

There is electricity in the air – and it’s not everyone mining Bitcoins. There is a palpable sense in South Africa that things are changing, including the investment landscape. Investors are aware that there are alternatives to traditional active managers. In addition to trackers, passive funds and index tweakers such as smart beta, professional managers […]

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Once bitten, twice shy..

The problem with investing based on sentiment is exactly that: sentiment. Keynes’ animal spirits are unpredictable, irrational and often run contrary to our interests. Moreover, they hold grudges. A fund manager whose investment in a given stock ends badly, resulting in poor performance for the fund, will naturally be reluctant to reinvest in that same […]

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My fund has a diversified risk profile….oh, wait…Naspers…

When you buy a supposedly low-risk ETF tracking the JSE All Share index, are you really diversified or are you making an increasingly large bet on a single share?  Everyone loves how profitable Naspers is but its profits aren’t even generated in-house: everything derives from its overseas minority stake in Tencent.   To put this […]

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Methodical marks solid returns this year with its ‘quantamental’ approach

An optimal combination of fundamental investing principles and systematic implementation forms the backbone of boutique equities firm Methodical Investment Management, which uses a series of proprietary algorithms to process and evaluate investment opportunities.

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Steven van Jaarsveld on KykNet

Watch interview with Steven van Jaarsveld, Chief Investment Officer of Methodical, where he discusses Systematic Investing, a process that underpins Methodical’s entire investment philosophy.

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AIN’T NO MOUNTAIN HIGH ENOUGH

Marvin Gaye and Tammi Terrell released this classic song way back in 1967 but the sentiment still rings true today for Methodical’s investment process. However, in the case of Propel, our proprietary suite of stock selection algorithms, it’s more a case of Ain’t No Distance Far Enough! Propel is designed to scour, investigate, evaluate and […]

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Steven van Jaarsveld on Business Day TV

Steven van Jaarsveld from Methodical Investment Management appears on Business Day TV to discuss the Global Equity Fund.

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Introducing Methodical

Steven van Jaarsveld, Chief Investment Officer gives an overview of Methodical’s systematic investment philosophy and process which is underpinned by fundamental investment theory.

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Systematic Strategies Finding Favour

They say that one is the loneliest number… and, since its launch, Methodical has largely been the only equity house in South Africa utilising pure systematic investment in its retail and institutional offering.  That has begun to change, however, with the entrance of several new South African products in the same space. Quantitative investment is […]

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Happy 1st Birthday Again!

Following the 1st anniversary of Methodical’s local equity fund in June, the Methodical Global Equity Fund reached the same milestone on 1st August 2017. Having a global fund offering provides optionality to investors and increases the universe of eligible assets.  With everyone hunting for yield, the ability to invest beyond South Africa’s shores remains an […]

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Stock Selection – NVIDIA

In last month’s note, we used the first anniversary of the Methodical Equity Prescient Fund to reiterate our belief in Methodical’s investment approach. As is clear from our name, Methodical adopts a systematic approach to stock selection and allocation, eliminating emotional bias in the decision-making process. Investors frequently ask for examples that demonstrate this approach […]

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Dark Clouds, Silver Lining

The 1st of June marked the first birthday for the Methodical Equity Prescient Fund, what a year it has been. Remember, this fund is South Africa domiciled, with a 75% allocation to South African large and mid-cap equities as well as fixed 25% allocation to developed market equities. In our discussions with investors we explained […]

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Rolling Alpha

The 12-month rolling outperformance of the FTSE JSE All Share index on this strategy is shown in Figure 1 bellow along with other major market participants. These market participants were selected for this analysis as they are the most well-known managers in the local market. Our portfolio is highly concentrated at 20 local holdings which […]

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