Sterling has been blasted lower after BoE governor Carney cast doubt on a previously pretty-much-expected UK May rate hike. The EU's rejection of Britain's latest Brexit-Irish border plan only served to deepen the rot.
Article / 20 June 2016 at 15:30 GMT

Saxo Insight: Equity positions update

Head of Equity Strategy / Saxo Bank
  • Biogen added in the wake of 50% price decline from peak
  • Inditex stock's strong growth outlook warrants a long
  • Speculative long position in Nikkei on "Bremain" bias

By Peter Garnry

Last Friday we added a couple of new positions. A new long position was added in Biogen (BIIB:xnas) as we see value on the backdrop of a 50% decline from its peak. Recently the stock has been under pressure due to weak trial data from its multiple sclerosis drug. However, the drug portfolio still has potential to surprise in the second half. The position is hedged with the Nasdaq Biotechnology ETF (IBB:xnas).

Biogen weekly share price since 2012
Biogen stock
Source: Saxo Bank

A long position in Inditex (ITX:xmce), Spain’s largest retailer, was also added hedged 1:1 with the IBEX 35 Index (SPAIN35.I). The fast-growing retailer released strong earnings last week showing robust 15% revenue growth and its expansion into international markets and e-commerce are underpinning growth. The stock is undervalued given its growth trajectory.

We also added a speculative long position in Nikkei 225 Index (JP225.I) as we're positioning the portfolio slightly for a “UK Remain” scenario on Thursday. If we are right about “UK Remain” then we expect the JPY to sell off, leading to a short-term rally in Japanese equities.
As of this writing our equity portfolio is running at 4% net exposure, basically USD neutral, ahead of Thursday’s UK referendum. Our gross exposure is 101%

Equity positions
The full table with data on our equity positions can be found in the attached PDF.

– Edited by Clare MacCarthy


Peter Garnry is head of equity strategy at Saxo Bank

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SaxoStrats - Equity Positions

staseramibutto staseramibutto
you mentioned you were long Gilead few months ago, but I don't see it anymore.
when did you decide selling it?
why should it not be a long?
SierraPt. SierraPt.
I missed your trade idea on Qihoo - when did you publish it and where?
Teofilo Teofilo
It's time is now... Get a loan in Samsung, Unicredito, Arcelor Mittal and Berkshire.
In 5 years portfolio up 50pct and GBP 20pct lower. Happy days...


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