Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cam Hui has been professionally involved in the financial markets since 1985 in a variety of roles, both as a quantitative equity portfolio manager and as a sell-side analyst. He graduated with a degree in Computer Science from the University of British Columbia in 1980 and obtained his CFA Charter in 1989.

Cross-Asset Strategist & Quantitative Analyst

Peering into 2020: New Decade, New Paradigm

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Thematic (Sector/Industry)

Finance literature since the Great Financial Crisis has been filled with the imagery of swans. Black swans. White swans. Grey swans. What is missing is the ugly duckling that grew up to be a swan. More importantly, what if an investor could identify an ugly duckling before it becomes a swan?We have identified such a candidate. The relative performance of U.S. stocks against the MSCI All-Country World Index (ACWI) in black, and the Euro STOXX 50 against ACWI in green. While there is no question that U.S. stocks have been the winners, eurozone equities are in the process of making a broad saucer-based relative bottom, and may be poised for a period of outperformance. The relative bottoming process is especially remarkable in light of the current environment of global trade uncertainty, which may be a signal of investor capitulation and the inability to respond to bad news.<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/092/355/original/SPX%20and%20STOX5E%20vs%20ACWI.png?1562453932" class="editor-image img-responsive" data-smartkarma-image-id="92355"></figure>We find that eurozone equities appear to be poised for long-term superior performance. The short-term perspective is also supportive of the bull case. This may be a case of an ugly duckling that is on the verge of turning into a swan.

Finance literature since the Great Financial Crisis has been filled with the imagery of swans. Black swans. White swans. Grey swans. What is missing is the ugly duckling that grew up to be a swan. More importantly, what if an investor could identify an ugly duckling before it becomes a swan?We have identified such a candidate. The relative performance of U.S. stocks against the MSCI All-Country World Index (ACWI) in black, and the Euro STOXX 50 against ACWI in green. While there is no question that U.S. stocks have been the winners, eurozone equities are in the process of making a broad saucer-based relative bottom, and may be poised for a period of outperformance. The relative bottoming process is especially remarkable in light of the current environment of global trade uncertainty, which may be a signal of investor capitulation and the inability to respond to bad news.We find that eurozone equities appear to be poised for long-term superior performance. The short-term perspective is also supportive of the bull case. This may be a case of an ugly duckling that is on the verge of turning into a swan.

An Ugly Duckling About To Be A Swan?