It all comes down to interest rates. As an investor, all you're doing is putting up a lump-sump payment for a future cash flow.
Important developments at Absolute Return Partners
Before getting into this month’s topic – higher interest rates – I need to share a story with you. The reason will become obvious in a moment.
Back in the summer of 1986, I was offered a job at Shearson Lehman in London. Quite excited about the opportunity, I was keen to accept the offer but acknowledged that my newly married wife had, only months earlier, landed a new job at Nykredit in Copenhagen which she very much enjoyed. Knowing that she was probably going to be less enthusiastic about this opportunity than me, as I cycled home from the office that evening, I carefully prepared what to say. The talks went on and on – into the early hours of the next day. Finally, she caved in. “Yes, I will come along, but you must promise that this is only a 2-3 year adventure, following which we’ll go back to Denmark – promise?”. “Promise!”, I said. Deal done.
35 years later, we are still here but not for much longer. Boris Johnson’s inept handling of the trade terms between the UK and the EU, where financial services were blatantly ignored, has made it impossible for Absolute Return Partners to do parts of its business without having a foot inside the EU. Consequently, I will be moving back to Denmark later this year (once the necessary licence have been secured) to manage Absolute Return Partners (DK), a wholly owned subsidiary of the UK mothership.
The move won’t affect the Absolute Return Letter, neither will it affect the services we provide through ARP+. In fact, I will most likely have a little bit more time on my hands to dig deeper on various investment opportunities, as I will relinquish my management responsibilities in London, so ARP+ subscribers should benefit.
Talking about ARP+, we have recently published an update on fusion energy, which is available to all subscribers here. If you haven’t read it yet, I urge you to do so. We all dream of the occasional 10-bagger in our investment portfolio, but this one could exceed even my wildest imaginations. Investment opportunities rarely come bigger than this. However, as I am not allowed to discuss specific investment opportunities in the Absolute Return Letter, I shall stop here.
One final word before I start this month’s letter. I will shortly be passing on the responsibility of managing the firm to Peter Kim, who will become our new Managing Partner, subject to FCA approval. Peter joined ARP in February 2012 and has been rising through the ranks ever since. At present, he is our Chief Operating Officer. Please join me in congratulating Peter.