We are currently witnessing the beginning of a prolonged structural energy crisis caused by a poor understanding of what energy is and a lack of knowledge of our dependence on fossil fuels.

The European auto industry has for several years seen significant secular headwinds from a technology change that will also challenge the business models of the auto industry in the next decade.

Our investment philosophy is a simple one: our experience tells us that to make a difference as an investor you need to have a different approach than most other investors.

2016 proved a difficult year for our global products. The reversion in interest rates had a massive impact on factor and sector performance globally. Value outperformed growth as a more benign reflationary – if not outright inflationary– environment was priced in. The big question as we enter 2017 is whether the rise in interest rates is cyclical or secular.

We visited China on two occasions this fall, and though the picture has been very mixed, the bottom-line is that the economy is doing what it’s supposed to do – rebalance away from fixed asset investments and industrial production towards private consumption and services.

By many measures, the start of 2016 has been the worst-ever start of the year for global equity markets. In the middle of February, the global equity market was down significantly compared to the market highs in April 2015. That said, since February 11, the equity market has reversed once again, regaining some lost territory.

By most measures, the first two weeks of 2016 have been the worst-ever start of the year for risk assets. With the MSCI All-Countries index down nearly -20% in USD from last May’s high, we have gone through the largest correction since 2011.