Connect with us

Business

Low minimum access to a Wall Street legend

Legacy Phuket Gazette

Published

 on 

PHUKET: I have followed the performance of the Abraham Trading Company for many years but it has always been off limits for use with the vast majority of my clients. As has happened with a lot of high-class money managers recently, a low minimum feeder has been opened that allows access to your average offshore investor. What I like about the track record of this fund the most, is that they manage to have the occasional mammoth up-year, and their down-years are very small in comparison.

Salem Abraham started the company in the late eighties, and since 1993 it has managed to deliver a compounded average return of about 20% per annum. The monthly volatility is a little higher than some of my other favorite funds, but they have only had five down-years during this time, all but one of which were about 9-10%. The largest draw-down is less than that of the global MSCI index and shows a very rapid recovery.

If past performance does accurately predict future performance, which unfortunately it doesn’t always do, this would be the number one go-to fund. Luckily you can now hold this fund as part of a diversified portfolio for only US$10,000, meaning even a portfolio of $100,000 would be able to hold it as a 10% holding. In the past you would have needed millions to hold it in any reasonable proportion.

What also makes this fund a little different from many of its trend following peers is that its best years haven’t been stock market crash years. Of course, it still does great in these periods and thus provides a certain amount of protection for a stock-based portfolio. It made a whopping 158% in 2003, a rather unremarkable year for most, while making about 41% in the crash of 2008.

The new feeder fund does have an additional layer of management costs (although we can get into it without paying any front or back end commission), but I have never had a problem paying up slightly for great managers. There is some truth to the saying that you get what you pay for, even though sometimes in reality you don’t actually get what you pay for. With the top traders, however, this is the truth and they have the track records to prove it. The only time to consider costs, in my opinion is when you are indexing, since there is no alpha, or return above what the stock market gives, being generated. If you only want a market return, get a discount brokerage account to buy ETFs and do it yourself. There is no reason to pay anybody for what you could get by simply buying one global equity ETF.

If you want real alpha (which can be either a similar long term return as the stock market but with less volatility, or similar volatility but a much higher return), Abraham Trading Company has been delivering for 25 years. As with many others in this asset class, the last four years have not been great. This is an indicator that the timing is likely perfect to be getting invested. All previous periods of under performance have been followed by amazing returns. I have a feeling the next few years will likely see some large displacements in the global financial markets, which is the environment in which this fund thrives.

David Mayes MBA resides in Phuket and provides wealth management services to expats around the globe, focusing on UK pension transfers. Faramond UK is regulated by the FCA and advises on pensions and taxation – email david.m@faramond.com or call 085-335 8573.

Keep checking our online Phuket Business pages, join our Facebook fan page or follow us on Twitter @PhuketGazette for local and national business news.

— David Mayes

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Myanmar9 hours ago

Myanmar’s economy to shrink by 18% due to military coup and Covid-19

Singapore10 hours ago

Singapore plans to vaccinate 80%, reopen with quarantine-free travel by September

Thailand11 hours ago

Pattaya suspects arrested for live streaming breaking curfew

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Thailand12 hours ago

Sinovac/AstraZeneca highly effective, according to Thai research

Phuket13 hours ago

Phuket vice governor says “Sandbox” tourists aren’t scared off by Covid situation

Thailand13 hours ago

Ministry of Education seeks 21.6 billion education subsidy

image
Join the conversation on the Thaiger Talk forums today!
Coronavirus (Covid-19)14 hours ago

The ‘infodemic’ – interview with Helen Petousis-Harris about Covid misinformation

Best of15 hours ago

Phuket’s 8 Best Rooftop Bars

Coronavirus (Covid-19)15 hours ago

Ayutthaya logs 255 new infections, hospital beds full

Thailand15 hours ago

Another “monkey war” in Lop Buri, hundreds fight in the street- VIDEO

Thailand15 hours ago

Plantations International provides Pattaya with provisions

Coronavirus (Covid-19)16 hours ago

Monday UPDATE: 15,376 new infections, Provincial report

Thailand16 hours ago

Thai baht goes from top-performing to worst-hit currency in Asia

Coronavirus (Covid-19)17 hours ago

Covid train cancelled, SRT cites lack of passengers

Coronavirus (Covid-19)17 hours ago

Government submits proposal to allow department store restaurants to sell food online

Thailand5 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism5 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket5 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism5 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand5 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism5 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand6 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand6 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand6 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand6 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand6 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand6 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand7 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand7 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand7 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending