May 23, 2017

Diving into Yields

“Consistency of involvement is a big deal in shipping. It is very hard to dip in and dip out.”

The Grid: Which sectors do you invest in and what is your methodology?

Marcus Machin: Our business is solely focused on shipping and oil services. We have approximately US$1.6bn in AUM, of which 40% is in a hedge fund while the rest is deployed in direct investments (59 vessels). From our Dubai office we cover a footprint roughly from Istanbul to Singapore.

The sectors we cover are perceived to be highly volatile in terms of earnings and asset values. Our job as investment manager is to ensure we understand the shipping and oil services markets  and the factors that affect them. We then match opportunities to the risk-return parameters of our institutional counter parties. In the last five years we have seen more people drawn into alternative assets as a result of low yields in habitual investments.

(more…)

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