Investment

Chart of the Month – Bike-to-school

by Marie-Caroline Fonta

Bike-to-school

Source: Notz Stucki

September most often means back-to-school time. This year it takes place in a particular context. Our habits have been disrupted over the last few months, our mobility has been reduced, and there is an awareness of our own well-being and the environment.

Social distancing and lockdowns led people to adapt and seek ways to improve their well-being during this odd period. Doing some sport and exercising, but at home with online courses or the purchase of a connected home bike. Once the lockdowns were over, people were encouraged to use soft mobility and avoid public transportation, and a boom in bicycle sales was observed, a sector that was already demonstrating growth and a rising offering on the e-bike side. This is also leading to an increased awareness of the environment and the impact that we can have on it.

There is one investment theme that we have appreciated for several years, driven by the consumption habits of new generations: the quest for wellness.  We are referring here to physical wellness through physical activities: activewear and equipment companies. Before the Covid-19 crisis, codes had already evolved a bit in sport with the improvement of the technicality of products, accessibility and digital. Today, we are in a connected and social sport. Companies in the sector were obliged to quickly adapt. We were already invested in this thematic and have increased our exposure since March (through three of our funds). We have favored companies that have worked their brand image with new generations using strong messages, proposing simple distribution channels, with a wide exposure to digital and we have avoided fitness centers. Many investors over-weighted technology and healthcare in this crisis, but one sector has strongly rebounded since March: it’s wellness. The graph shows a portfolio we created at the end of December 2019 with our exposures and future candidates in the sector. It holds 6 equally-weighted stocks with a monthly rebalancing. We observe a very strong rebound after being very volatile in March.

But where does the future lie? These companies have certainly benefited from a good momentum, but we are convinced that new habits will partially remain and that sports at home or outdoors, will continue to increase, this being a simple way to escape. These companies were good students and this basket offers today a PEG ratio in line with the MSCI World Index. Mobility is resuming around the world and China plays a big role in the strong growth of the activewear segment: the number of Chinese Marathoners is higher than five years ago, the government has set ambitious goals for the construction of sporting facilities and grants tax reductions for companies engaged in sports activities. In our opinion, the quest for wellness has a bright future ahead and is not just a Covid-19 play.

 

 

Past performance is not indicative of future results. The views, strategies and financial instruments described in this document may not be suitable for all investors. Opinions expressed are current opinions as of date(s) appearing in this material only.

References to market or composite indices, benchmarks or other measures of relative market performance over a specified period of time are provided for your information only. Notz, Stucki provides no warranty and makes no representation of any kind whatsoever regarding the accuracy and completeness of any data, including financial market data, quotes, research notes or other financial instrument referred to in this document.

This document does not constitute an offer or solicitation to any person in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it would be unlawful to make such offer or solicitation. Any reference in this document to specific securities and issuers are for illustrative purposes only, and should not be interpreted as recommendations to purchase or sell those securities. References in this document to investment funds that have not been registered with the FINMA cannot be distributed in or from Switzerland except to certain categories of eligible investors. Some of the entities of the Notz Stucki Group or its clients may hold a position in the financial instruments of any issuer discussed herein, or act as advisor to any such issuer.

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Antonio Mira
CHIEF FINANCIAL OFFICER, MEMBER OF THE EXECUTIVE COMMITTEE

Antonio Mira joined NS Partners in 2006 as Group Chief Financial Officer. He heads the corporate functions and is involved in coordinating and implementing the decisions of the Executive Committee.
An experienced bank auditor, Antonio started his career in 1995 with Arthur Andersen, where he worked for some 7 years before joining Ernst & Young in 2002 as a Senior Manager.
Antonio is a Swiss chartered accountant and a Business graduate of Lausanne University (HEC).

Sébastien Poiret
DEPUTY HEAD OF WEALTH MANAGEMENT

Sébastien Poiret joined NS Partners in 2008 and manages funds of hedge funds and private client mandates. He also oversees the development of the Group’s offices in Mauritius.

Prior to joining NS Partners, he served as a Trader, Head of Manager research and Portfolio Manager in the USA and Switzerland for a single hedge fund (1998-2004) and for Optimal (2004-2008), Grupo Santander’s fund-of-hedge funds operations.

Sébastien holds a Bachelor’s degree in Corporate Finance from the ESPEME Business School (EDHEC Group) and an MBA in Finance and Economics from the Institute of Business Administration, both in Nice.

Abir Oreibi
BOARD DIRECTOR

Abir Oreibi joined the Board of the NS Partners Group in 2018, where she brings her truly international perspective and rich experience.
Among many other ventures, Abir set up Alibaba.com’s first European office. After living and working in Shanghai, Hong Kong, Bangkok and London, she now lives in Geneva, where she is CEO of Lift Events, an organization that identifies technology trends, their business and social impact through the organization of events and open innovation programs. Issues related to the challenges and opportunities created by new technologies as well as the strategic responses from organizations are at the heart of Lift’s activities.
Abir holds a BA in Political Sciences from the University of Geneva. She is an investor, and member of advisory and innovation boards.

Romain Pidoux, CAIA

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Romain Pidoux joined NS Partners in 2011 and heads the Group’s Risk Management.
He started his financial career in 2005 as Head of Quantitative Analysis for a Swiss Family Office, selecting funds and managing portfolio allocation. In 2008, he switched to the alternative world and joined Peak Partners as hedge funds analyst.
He is a Chartered Alternative Investment Analyst (CAIA) and holds a Master’s degree in international relations from the Graduate Institute of International Studies at Geneva University.

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