The Spanish they had almost no way to escape the coronavirus hit to the financial markets. And those who took the worst part were those with the most bias towards ‘value’ strategies and investment in ‘smallcaps’. Neither conservative, nor moderate, nor risky were spared from the impact of the pandemic on investment portfolios during the first four months of the year.
“No asset has served to preserve capital in Spanish portfolios”. This is how conclusive are the conclusions of the Portfolio Barometer prepared by Natixis IM that the French manager has presented this Tuesday. And it is that the study shows that only gold and some categories of American debt They have managed to cushion the bearish impact with positive returns.
Despite the del gold rush ’unleashed in recent weeks, Juan José González de Paz, senior consultant at Natixis IM Solutions, points out that “More than a refuge it is a risk diversifier”. In this sense, he recalls that in the moments of greatest investment panic, even the precious metal suffered declines, so that “it has not offered full coverage.” “It has been seen that it might not be there when it is most needed,” said the expert.
Punishment to the ‘value’
Regarding the ‘value’ strategies that have become so popular in recent years among Spanish investors, the study attributes this worse performance to their link with the evolution of raw materials, energy and basic materials. “The values that are most sensitive to the economic cycle do not go back and we continue in the eternal promise that they will recoverGonzález de Paz has commented.
In contrast, the followers of the ‘growth’Have benefited from the rebound in technological values, which have discounted greater use and consumption of their services and goods. In this sense, the firm points out that while the MSCI Value Europe lost 26.7% in the first four months of the year, the Quality Growth index limited its fall to 14.6%. Only 14% was the cumulative decline of the Quality Momentum.
Similarly, absolute return strategies were also ineffective. “All the strategies fell in a general way, nor did they manage to preserve capital, nor did they demonstrate the ability to de-correlate with respect to traditional assets“says the investment firm.
Natixis IM director for Iberia, Almudena Mendaza, has underlined the importance of diversify portfolios as a plus of those who have achieved better performance in this hectic first four-month period of the year. In this line, he stressed that “trying to control the timing market timing’ is a mistake “, since” at a time of abrupt decline is when fewer investment decisions must be made to try to hit or follow the trend. “
Among the opportunities left by the volatility and economic changes imposed by the health crisis, Mendaza aims at thematic funds to take advantage of “the new consumer trends that have accelerated”. He also recalls that a common drag on the Spanish investor is that “historically it has weighted European equities more than US ones.”
Beyond the firm commitment of central banks to defend the economy, the expert regrets that “investors who are in Europe they are still waiting for many things that are not taking shape”, And that continues to penalize the evolution of the stock markets on this shore of the Atlantic.