On Tuesday 6th November, Nick Hornby was awarded the top award at the Spear’s Wealth Management Awards 2018, held at The Dorchester. The Outstanding Achievement Award is the highest reward that Spear's give out at what has come to be known as the UK’s “financial Oscars”. The awards celebrate the very best in wealth management, private banking and law, acknowledging innovation, success and outstanding contributions to wealth management and beyond. Presenting Nick with his award, the judges commented that, “[Nick is] a person of top quality, a fantastic ambassador for the industry doing something really different. A standout, praising his huge credibility”. We are delighted that Nick’s dedication to Cerno Capital’s investors over the past 11 years has been recognised by our peers.
Outside In and Cerno Capital are pleased to present Outside In: Discover, an exhibition celebrating artwork by three Outside In artists. Outside In was founded in 2006 at Pallant House Gallery and became an independent charity in 2016 following a highly successful decade. The award-winning charity works to provide a platform for people who face significant barriers to the art world whether due to health, disability, social circumstances or isolation, and currently supports 2,600 artists. We were able to collaborate with Outside In for this exhibition, displaying colourful works that are varied in style and representative of artists from diverse backgrounds reflecting Outside In’s inclusive ethos. All three exhibiting artists create work with strong, vibrant imagery, each with a very unique and distinct practice. Nnena Kalu works in an obsessive and determined way to develop a range of work with an underlying approach of a systematic layering. In the works on display, she uses repetitive lines which she draws in circular motion, responding to the rhythm and noise of creating the work. Once she has applied a painted background, she creates repeated lines with a circular motion, frequently following the same route to create heavily worked into vortex shapes and [...]
Fergus Shaw comments on the proposed £1.4bn takeover of John Laing Infrastructure Fund (JLIF), one of the UK’s biggest listed infrastructure funds, as "completely opportunistic". Click here to read the full article on FT.com
In his latest opinion piece on US markets, Michael Mackenzie references James's recent investment letter - “it is waning global demand which presents the greatest threat, exacerbated by a strong dollar, weakening of the Chinese economy and trade friction. These are hardly imaginary events.” Click here to read the full article.
James Spence's comments on US equities are included in Michael Mackenzie's column on the S&P 500's tough start to September. James notes, "it is waning global demand which presents the greatest threat [to US equities], exacerbated by a strong dollar, weakening of the Chinese economy and trade friction. These are hardly imaginary events." Click here to read the full article.
On Wednesday 25th July, we hosted an evening of Rounders and BBQ, letting six teams battle it out in Regent’s Park for a range of prizes. We were lucky to have a beautiful evening for the event, and players and spectators soon got into the swing of the games. After some hotly contested matches, the Pink team (Strabens Hall and Bircham Dyson Bell) won the tournament, although there were some fantastic moments in all games that made for some very exciting play throughout the evening. Thanks to all of those who took part to make it such a great evening: Bircham Dyson Bell, Strabens Hall, Pennington Manches, Laura Devine, Withers, Seddons, FED London, DWF Law, RSM, Panthera and Farrer & Co. We have uploaded more photos taken throughout the night to our Flickr account here.
We were delighted to recently support David Bell, PCD Club, and Fraser Dyer, FED London, as they undertook the Maidstone to Monaco Rally in aid of the Parenta Trust, who build schools and provide education for pre-school children in Uganda. Participants in the Rally have built 6 schools in the last 6 years, providing opportunities to some of the world’s poorest families. This year, the Rally group have raised £16,000 for the cause, which will provide education for 150 children. David and Fraser documented their journey over the Alps, which they share with us below: On Wednesday 27 June, 7 cars left Maidstone with a goal of getting to Monaco and back via the Swiss Alps in 5 days. The twist was that cars have to be bought for less than £500 and are decorated, coming in all shapes and sizes. On our trip was an ancient Volvo covered in carpet; a Land Rover with 250,000 on the clock and a Vauxhall Corsa that was about to be scrapped. Our car was a convertible 1997 MG MGF with 153,000 on the clock, easily the best car there! We were kindly sponsored in our mission by Cerno Capital and a couple [...]
We are delighted to announce that Nick Hornby has been named as one of the Top Ten Ultra High Net Worth Wealth Managers 2018 by Spear's. In the accompanying entry, Spear's writes that Cerno Capital has just celebrated ten years as a firm, with Nick looking forward to expanding the firm's offering from a boutique focusing on private clients to taking on business from consultants and financial intermediaries. Nick's entry can be seen below, and the full online entry can be read here.
On Wednesday 24th May, we held our annual Investor Update at our offices on Sackville Street. Clients and friends of the firm joined us for an afternoon of presentations given by the Investment Team, before drinks and an exhibition of photographic works by Naomi Baker and Linnea Rheborg, the two Getty Images interns we have been supporting over the past year. James Spence and Fergus Shaw led the presentations commenting on the world as we see it, updates to our investment strategies and global themes that we will be following in the coming year, before being joined by the full Investment Team for Q&A. In particular, James and Fergus were keen to mention the below points: Uncertainty in investment should not of itself be feared. It is the locus of investment returns. Valuations require attention, but the biggest risks reside in so called “safe” assets such as bonds. Several changes in allocation in the past 12 months: notably the sale of gold and US inflation linked bonds. The addition of a China small cap specialist to portfolios and a new investment in Funding Circle, which channels credit to smaller scale commercial enterprises. Following the investment presentations, Naomi and Linnea joined [...]
The Investment Team compiles questions and answers, asked at our Global Leaders Breakfasts on Wednesday 25th & Thursday 26th April 2018. Most of the information is public, what do you see in your stocks that others don’t? It is less a matter of seeking information advantage in the here and now but structuring our thoughts over sufficient long-time horizons where competition is scarcer. The arbitrage is largely in holding great companies for the long term and avoiding the usual pratfalls which are over-leverage and disruption. Does the hard rebalance contradict the proposition to hold stock in the long-term as you cut the winners? Rebalancing is consistent with our expectation of each company making a meaningful contribution to return and our time horizon given lower confidence in short term share price outcomes versus longer term fundamental performance. We expect rebalancing to equal weights will add value as it is the natural response of a long-term shareholder to the impact of stock market preferences on share prices. Cutting positions to maintain equal weighting is an important risk control given it minimises the portfolio of major industry disruption to any one position. Our approach effectively deals with the situation of holding an outsized [...]