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Polar Capital Global Insurance
Jim S
Posted: 08 November 2017 18:02:48(UTC)
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Anyone have a view on Polar Capital Global Insurance?

I want to top slice some PIN soon, recent gains mean my ISA is too overweight in Private Equity. I would like to replace with something that has good long term growth prospects but also some defensive qualities in case of a wider market correction. I am looking to buy and then hold for at least a few years.

I was looking at insurance, mulling over Prudential, but stumbled on Polar Capital Global Insurance. The the track record over 3,5,10 years is very impressive, not just growth but it seems to have low volatility. Something that struck me was how well it held up in 2007 and 2008. So maybe its a low volatility sector, and also a fund run by good stock pickers.

My slight concern is 90% of holdings are companies based in US, UK, Canada & Switzerland. Although I guess earnings are much more global than where these companies are HQd, these countries' markets are on high valuations at the moment. So maybe insurers based there are currently a bit overpriced as well.

Prudential has been on my watch list for a while and seems to be growing well in Asia, so that might be another option.

Thoughts anyone?
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Shetland on 08/11/2017(UTC)
Shetland
Posted: 08 November 2017 18:31:22(UTC)
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Where can you see performance data going back to 2007 ?
Tim D
Posted: 08 November 2017 19:05:29(UTC)
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Shetland;53030 wrote:
Where can you see performance data going back to 2007 ?


Trustnet has it back to 1998. Was just comparing with FTSE World as a benchmark. Did indeed seem to come through 2008 a little bit better (supporting OP's "defensive" claim). Last 5 years it's outperformed - suspect due to it having even more in the US - but that makes me dubious about its defensive prospects in future.

Screenshot: vs ftseworld
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Guest on 12/11/2017(UTC), Shetland on 12/11/2017(UTC), Jim S on 13/11/2017(UTC)
Eppie
Posted: 12 November 2017 12:55:29(UTC)
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I hold Polar Global Insurance Fund. It has increased by 27% over the last 15 months. It invests in reinsurance so takes risk in real world events. The fund owns 30 to 35 global reinsurance stocks. Returns tend to have a low correlation to the financial system as claims are linked to acts of God rather than the economic cycle. The difference between premiums received and claims paid, is the investor’s profit.
I intend to hold it it has low volatility and good return. Its ratios are:
1year 3year
Volatility 8.29 9.40
Alpha 11.50 16.54
Beta 0.39 0.40
Sharpe 1.28 1.76
InfoRatio 0.75 1.05
RSquared 0.13 0.18
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Shetland on 12/11/2017(UTC), Tim D on 12/11/2017(UTC), Jim S on 13/11/2017(UTC), dlp6666 on 13/11/2017(UTC)
Sara G
Posted: 12 November 2017 14:32:53(UTC)
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Jim S;53029 wrote:
Anyone have a view on Polar Capital Global Insurance?


Prudential has been on my watch list for a while and seems to be growing well in Asia, so that might be another option.

Thoughts anyone?


PRU is also on my watchlist due to the international exposure. Fairly recent commentary on CW suggests that at current price levels it is significantly below fair value:

http://citywire.co.uk/mo...e-and-go-ahead/a1041195




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Jim S on 13/11/2017(UTC)
srg751
Posted: 13 November 2017 09:14:28(UTC)
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srg751 Posted: 22 December 2016 21:23:5.
Cuey, take a look at the OEIC, Polar Capital global insurance. ( financials with a lot less risk). Look at past performance and lack of volatility. Can't believe I'd never heard about it.

.......................................................................................................................................................................................



.


Further, take.a look at the price action pre, during and post the recent tornados in the US. You had time to get out on the news and get back in to enjoy the temporary drop in the price. The 'catastrophes also gave us a good stress test. .
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Jim S on 13/11/2017(UTC), dlp6666 on 13/11/2017(UTC)
Jim S
Posted: 13 November 2017 12:46:53(UTC)
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Thanks for all the feedback

I was also thinking about Catco Global Reinsurance recently as its drop during hurricane season seemed overdone, but I gave up as I couldn't seem to buy it on HL. Catco seemed much less correlated to markets than other insurers or PCGI, and I think when disasters happen that tends to put up the cost of reinsurance in the years following.

I have some caution about the US exposure, but think I will open a small position in in PCGI soon and then look to top up on weakness.
dlp6666
Posted: 13 November 2017 14:34:45(UTC)
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Jim S;53213 wrote:

I was also thinking about Catco Global Reinsurance recently as its drop during hurricane season seemed overdone, but I gave up as I couldn't seem to buy it on HL. Catco seemed much less correlated to markets than other insurers or PCGI, and I think when disasters happen that tends to put up the cost of reinsurance in the years following.



I came across what seems to be a similar fund to Catco that can be bought on HL - Blue Capital Reinsurance Holdings Ltd (BCRH) - current price is at a three-year low, so perhaps a buying opportunity (or not?).
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Jim S on 13/11/2017(UTC)
Jenki
Posted: 13 November 2017 15:28:51(UTC)
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Interesting to note that Polar Capital Global Insurance, is in the top ten holdings of Hawksmoor Vanbrugh. A defensive play which is a favourite of K L.
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Jim S on 13/11/2017(UTC)
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