M&L Capital Management
Our central investment thesis is that we believe in the increasing economic power of the Machine in the two century long battle for supremacy between Man & Machine
Manchester & London was set up in the 1970s for UK Investors to invest in a fund that attempts to beat the UK index. Nothing has changed since the 1970s as > 90% of the investors in MNL LN are still UK based and we believe such UK investors still want to beat their domestic benchmark. Hence, the benchmark’s relevance is derived from the domicile of the investor. The beauty of Manchester & London is that our purpose is to provide the UK investor with the best risk adjusted performance SO, by design, we do not unimaginatively fit a portfolio around a benchmark as our competitors do. (The latter method is designing for failure).
Please read our explanatory LinkedIn article here discussing the rationale behind our Option positions.
Please read our explanatory LinkedIn article here discussing the rationale behind our Short Hedge positions.
This is a good question and we provide regular updates on our Linkedin site here.
In conclusion, Mark BUYS a lot more shares than he sells but when the Market Makers need liquidity to satisfy demand on the open market he is willing to assist.
The use of Delta Adjusted Exposure on Fact Sheets is common across many Fund Management companies. Please see below explanation provided by Goldman Sachs Asset Management on some of their Fact Sheets – we follow the same definition and rationale:
“All options positions are displayed on a delta adjusted notional value basis i.e., the exposure is option delta * underlying notional value. Delta adjustment is necessary to properly account for the sensitivity of options to changes in price of the underlying security as well as for making exposure comparisons to the underlying (measuring options exposure as premium will understate the economic exposure and risk, while measuring exposure as notional value will overstate the economic exposure).”
Please also note the following quote from a Fidelity Fund International fund Fact Sheet:
“all derivatives are included on an exposure basis and, where necessary, are delta-adjusted. Delta-adjusting expresses derivatives in terms of the equivalent number of shares that would be needed to generate the same return.”
Hence Portfolio Net Delta Adjusted exposure is, in many opinions, the most representative gauge of a fund’s overall exposure to equity markets.
Note: An option’s delta value can change regularly and behave non linearly dependent on the distance to the strike price of the option.
Our central investment thesis is that we believe in the increasing economic power of the Machine
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Note: Whilst Manchester & London Investment Trust (“MNL”) is available for investment by any investor on the London Stock Exchange platform, M & L Capital Management is only the marketing agent for MNL in the UK.
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