Pacome is an investment manager and head of risk at Nutmeg with more than ten years' experience in investment and risk management. He previously worked for a US family office and a large European asset manager and started his career at Société Générale in Tokyo. He holds an MSc in quant finance from Bocconi University in Milan and is a certified financial risk manager and chartered alternative investment analyst.
Why we welcome a return to negative equity-bond correlation
29 June 2023|5 min
As the twin pillars of multi-asset investing, a well thought out mix of equities and bonds is core to building diversified portfolios. Recent behaviour of both asset classes is providing some compelling reasons for investor optimism.
What 2022’s crypto ‘crash’ can teach investors
24 November 2022|5 min
When cryptocurrency exchange FTX filed for bankruptcy on 11 November, it plunged the sector into crisis. Digital currencies dropped in value as investors ditched their investments, an investigation was launched into the company, and some commentators labelled the event crypto’s “2008 moment”. But what can the events teach investors?
Harnessing the power of long-term investing
18 August 2022|2 min
Investing should be considered a long-term undertaking. Short-term losses can cause stress, after all no-one likes to see their portfolio go down in value. However, staying in the market and resisting the temptation to tinker can pay off in the long term.
SRI: Why it’s underperformed in 2022, and the longer-term story
10 June 2022|5 min
It’s been a challenging year so far for socially responsible investing (SRI), with portfolios across the board having struggled to deliver positive returns. Though there are several factors at play which have impacted short-term performance, in our view the opportunities ahead remain largely positive for this still maturing theme.
Why market volatility doesn’t mean panic
15 November 2021|5 min
Although markets always experience a degree of volatility, the past two years have seen some particularly high levels of price fluctuations as both bad and good news around Covid-19 has hit the headlines. Our director of investment risk, Pacome Breton, details why this is the case and explains why volatility is not inherently a negative thing for investors.
Are equities becoming too expensive?
24 September 2021|6 min
Since the pandemic spread around the world and global equity markets fell in March 2020, equities have rebounded very strongly. With a rally in global equities of more than 70% (MSCI World including emerging markets between April 2020 and August 2021), many investors are wondering whether equity markets have become worryingly expensive.
How Nutmeg manages UK home bias
30 April 2021|5 min
Nutmeg is a UK based wealth manager with mostly UK-based clients, and this is reflected in our investment process giving a specific importance to UK assets. Here we explain what this means for our portfolios and how we manage this aspect of our investment strategy.
Embrace diversification, don’t follow the FOMO
23 March 2021|6 min
Something that comes up a lot when talking about investing is diversification. One simple view of this is “don’t put all your eggs in one basket”. However, there is a lot more to diversification than simply playing it safe or hedging your bets. Behavioural finance studies typically highlight that emotional investing can often derail well thought out, defined investment objectives. Diversification is one of the most important concepts in investing but it only works when investors stay disciplined and don’t make reactive bets because of a fear of missing out (FOMO).
Why we chose to buy gold – aka ‘TIPS on steroids’
18 September 2020|3 min
We recently started a gold position for a number of our portfolios, replacing some of our treasury inflation protected bonds (TIPS). Here we’d like to provide further explanation on how we understand gold in the current environment.
No, active funds haven’t outperformed. You must account for survivorship bias
3 June 2020|5 min
An article in the Financial Times claimed that stock-picking funds have outperformed passive funds over the long term. If you’re a regular reader of this blog, you’ll know that Nutmeg invests in exchange-traded funds (ETFs), which are passive, because we believe they offer our customers the best deal. Here’s why we think this article is wrong.