The fintech theme continues to evolve and see strong growth opportunities around the globe. With the recent SPAC revolution, there are a lot of new names coming public with fintech exposure.
18 Feb 2021
The Outdoor Living & Recreation theme remains resilient, with the travel industry still disrupted by the pandemic and consumers shifting expenditure to local forms of travel while also investing in their homes.
05 Feb 2021
The direct-to-consumer (DTC) theme has been a strong focal point for management teams early in 2021 as additional lockdowns have impacted traditional business models. Mobility, as a broader theme, continues to flourish.
25 Feb 2021
Past performance is not a reliable indicator of future results.
Our signature share baskets are thematic CFD portfolios of 20+ individual stocks constructed in collaboration with some of the most prominent thought leaders in the industry.
Signature share baskets are CFD portfolios created in collaboration with prominent thought leaders, utilising strategies refined from years of experience trading in the markets.
Diversify your risk
Through diversification, share baskets give you broad exposure to a theme, avoiding the risk of putting all of your eggs in one basket when trading on a single company.
Share baskets have no commissions when placing a trade. They also benefit from reduced holding costs – the price of holding a leveraged position overnight – compared to individual equities.
Spread betting or trading CFDs on shares baskets offers up to 5:1 leverage. This means for every £1 committed, you'll have £5 of exposure in the markets. This is equivalent to a 20% margin requirement. Any profit or loss will be based on your exposure.
Share baskets have two fundamental costs:
1. The spread between the bid and ask price which you pay when opening a trade.
2. An overnight holding cost for holding the position. We’ve annualised the daily fees below so you can compare with other trading opportunities. You’ll also notice that you can trade either long (buy) or short (sell) on these instruments.
|Future of work||-||-||-||-||-||20%||£0|
Our share baskets are constructed based on their growth potential. Are you passionate about disruptive innovation? Will the rise of direct-to-consumer businesses disrupt an outdated retail sector for generations to come?
Tech disruption has been felt throughout the global economy, and the finance industry has not escaped. This basket aims to capitalise on emerging trends in fintech, including: digital payments, bank modernisation, real estate digitalisation, electronic trading, alternative lending, personal finance tools and digital insurance. The universe of companies exposed to these themes is then narrowed, using historical financial metrics such as ROIC, FCF, revenue and profit margins, to filter for the highest quality stocks in the space.
Investment acquired by fintech firms in the last year
Expected transaction value of digital payments in 2020
No. of fintech firms that secured unicorn status in 2019
A high-growth theme, accelerated by pandemic-induced isolation. The future of work umbrella captures several compelling verticals including: work-from-home, collaboration software, IT services, digital learning, and the gig economy. After screening for companies most positively impacted by these growth trends, the constituents were subsequently narrowed by overlaying a composite score across a number of fundamental metrics, where each closely correlates with the characteristics consistently found in quality, growing businesses.
2-week inflows for Direxion’s WFH ETFs
Zoom Video’s H1 share price gain
Portion of global workforce more productive at home
The outdoor recreation market is colossal, one of the US’s largest economic sectors with $887bn in annual spending. This is nearly twice the size of the pharmaceuticals industry, and nearly equal the size of the financial services and insurance industry. In a world where outdoor leisure is only likely to grow, the segments expected to benefit from this shift in consumer behaviour include: leisure/recreation equipment, healthy living, wildlife viewing, GPS devices, sportswear & apparel, and many more besides.
Annual US spending on outdoor recreation
Americans’ annual spend on camping
Luluemon’s share price gain from mid-March lows to end June
The direct-to-consumer category captures several high-growth trends, including: ride hailing, food delivery, e-commerce, online education and many more besides. It’s a model that offers numerous advantages to its purveyor – think product personalisation and customer data collection – which drives higher profit margins, and in turn, demands higher valuation multiples from investors. Get exposure to best-in-class DTC companies, updated every 3 months.
US DTC sales by the end of 2020
Chewy’s new active customers – fiscal Q1
Teladoc Health’s share price gain – Q1 2020
A strategy that takes its foundation from Nomura managing director and head of quant strategies, Joseph Mezrich, whose Innovation Index has topped the broader market for nearly 40 years. Innovators displace industry incumbents, and ultimately go on to secure majority market share. It’s by screening for businesses that spend a disproportionately larger amount on research and development than its peers – filtering for firms with extraordinary ROIC and free cash flow – that this basket captures best-in-class innovators.
Facebook’s research spend last year
Average annual return for Joseph Mezrich’s Innovation Index
Combined outlay from top 10 R&D spenders in 2018
"The options market has consistently proved a leading indicator of future price movement in stocks. It’s my ability to combine a nose for options flow evaluation, with years of experience in fundamental analysis, which gives me a competitive advantage. I’ve used that expertise to select the themes that could drive high-growth opportunities for years to come."
Joe combines fundamental and technical analysis with tracking options flows to identify potential trading opportunities. He’s also head research analyst at Relativity Capital, and a former equity analyst at Thomson Reuters.
Joe’s made a living identifying the stocks others miss, digging deep to find that next small-cap destined for ‘household-name’ status.
Having made his name in the options market, Joe tracks ‘smart money’ – the flows of institutions and global asset managers – and as a result, spots opportunities, emerging trends, and even companies, that the rest of the market misses.
Joe’s wealth of experience sees him identify those few trends that are resilient enough to stand the test of time, and his unparalleled ability to establish the true worth of a business and its growth potential, is fundamental to his success.
IDENTIFIES DISRUPTIVE TRENDS
Studies market flows
EVALUATES COMPANY FINANCIALS
Filters by revenue, profit, ROIC etc
RANKING & QUARTERLY REBALANCING
Stocks individually ranked & weighted
Watch Joe explain the methodology behind his share baskets here
Joe explains why evaluating options flows – the movement of institutional or ‘smart’ money – gives him his edge. It’s a process that’s seen Joe identify lesser-known small-caps that have gone on to secure major market share.