In a bubble environment dominated by long-only investors or investors with a predominant long-bias, within a framework of minuscule if not negative bond yields, Fasanara offers a viable alternative in inventive market niches, capacity-constrained, venturing in brand new asset classes and making an extensive use of new-age financial technology.
In the years ahead, the progressive exhaustion of monetary printing will reach its climax. Quantitative easing is running out of road, as collateral effects and capacity constraints determine the end to its life cycle. Without that, policymakers will no longer be able to further kick the can down the road: markets wrongly assume that central bankers have got their backs. The bubble in both bonds and equities is now in its melt-up phase, but may soon deflate, for the first time in several years.
Fasanara Capital's unorthodox portfolio construction and unconventional investment strategy is a response to such transformational markets.