Winning the vaccine trade - where to next?
Getting the ‘vaccine trade’ right was perhaps the single biggest influence on performance for most fund managers in the second half of 2020. Equity markets jumped 10% in November on the back of the announcement, a huge month by any account. But for the managers who made the right call and backed it, a good year’s worth of returns were realised in a month. One fund that called it better than most was L1 Capital’s Long Short Fund, which posted just shy of 32% for the month. Founders and Joint CIOs, Mark Landau and Rafi Lamm, spent a huge amount of time last year researching vaccines, which gave them the confidence to fully position the portfolio for a positive result in November. In this episode of The Rules of Investing, Mark and Rafi tell us how far along we are in this ‘vaccine trade’ and how it plays out from here. We also discuss what went wrong following the IPO of the L1 Capital Long Short Fund, and they share several of the stocks that they think have outstanding opportunities ahead.