Cross-Asset Liquidity Strategist, CrossBorder Capital

Michael J. Howell

CrossBorder Capital an investment advisory firm specialising in macro-investing. Founded in 1996 with an international client base, CrossBorder focuses on monitoring and understanding global liquidity and capital flows. Our proprietary databases (available to clients) cover 80 countries in depth from 1980 onwards. We take a systematic quantitative methodology that uses this data with AI models to predict financial market movements. The efficacy of our data has been independently verified, and we have an associated but separate asset management division.

Cross-Asset Liquidity Strategist

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CrossBorder Capital

CrossBorder Capital is a London-based independent investment advisory firm. Founded in 1996, it exploits a gap in the investment arena by focusing on Central bank liquidity. 

It specialises in the monitoring and analysis of global liquidity flows - an important determinant of asset prices, from currencies through to bonds, equities and real estate.

CrossBorder Capital implements its investment strategy and currently manages over US$ 350m.


Cross Asset Strategy

Multiple Countries / Cross Asset Strategy

<ul>
<li>
Investor positioning data to early-May 2020 show global investors’ holdings are well-below typical equity benchmarks</li>
<li>This is particularly so in Asia, where allocations are more than two-standard deviations below normal
</li>
<li>Evidence shows that the low-point in allocations to Asian risk assets was put in around mid-March</li>
<li>Using GFC1 (2008-09) as a template, the next few weeks should see equity exposure increase significantly and continue to rise for at least two more years</li>
<li>Raising equity exposure at these low points in asset allocation typically result in 2-year ahead returns of over 40%
</li>
</ul>



Investor positioning data to early-May 2020 show global investors’ holdings are well-below typical equity benchmarks
This is particularly so in Asia, where allocations are more than two-standard deviations below normal

Evidence shows that the low-point in allocations to Asian risk assets was put in around mid-March
Using GFC1 (2008-09) as a template, the next few weeks should see equity exposure increase significantly and continue to rise for at least two more years
Raising equity exposure at these low points in asset allocation typically result in 2-year ahead returns of over 40%



How Are Asian Investors Positioning Their Portfolios?