MENU
Search

Login

Maritime Financial Research

Overview

Latest Coverage

Model Stock Portfolio - Oct 2016

Model Stock Portfolio - Summary October 2016

October 2016

  • Our model portfolio outperformed key benchmark indices from June to October, although it is still down 6% from February 2016. The portfolio generated annualized returns of 15.7% during the four-month period starting from 16 June 2016.
  • We continue to stick to our thesis that dry bulk names will be the outperformers in 2017, and have added Star Bulk Carriers because of its high spot exposure and large Capesize fleet.
  • We have increased allocation to the Port sector as the global throughput growth is stabilising and hence earnings will remain resilient in our view; we have included China-COSCO Ports and ICTSI.

June 2016

  • We made a tactical shift to increase allocation to the Dry Bulk sector in June 2016 as we believed the bottom had been reached early in the year. Meanwhile, we downgraded the Tanker segment to Neutral on increasing vessel supply.
  • We reshuffled our portfolio to play the recovery in the Dry Bulk shipping sector albeit from a very low base, and believed that the beaten-down Dry Bulk names could provide superior risk-adjusted returns.

February 2016

  • At the start of the year, we were positive on Tanker and Port sectors.
  • Our reasons for being positive on the tanker segment were increasing stockpiling and higher global refinery throughput
  • We backed diversified Port operators, but slower global throughput resulted in below par returns.
  • With correction in Tanker stocks and muted performance of Port operators, our model portfolio lagged the key benchmark indices by a wide margin.

Related News

J Lines’ merger is all about scale and survival

Today’s announcement that three Japanese shipping groups will merge their liner shipping businesses is further evidence of ’survival M&A’ sweeping the industry, a trend which is expected to continue.

DMER Launches model stock portfolio for the maritime sector

Drewry Maritime Equity Research (DMER) has launched a model portfolio, selecting stocks within the global maritime space, ensuring a balanced approach and risks in a low return environment.

6

$6bn: The combined value of container shipping industry investments we have advised on since 2010.

20

$20bn: The value of financing projects we have provided commercial due diligence advice for in port M&A since 2010.

48

The number of countries in which our Maritime Advisors have completed assignments since 2005.

400

Our advisors have been involved in over 400 port assignments over the past 10 years.
Latest Coverage
Our equity research service provides our clients with a range of report formats and supporting resources for the companies we cover.

Market understanding

Investment analysis based on a clear understanding of the market at both an industry and sector level.

Quality insights

Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight.

Company

Type of Report

Date

Download

A. P. Moller Maersk - Looking through the noise double upgrade to Attractive

Event Update 01 Dec 2016 PDF

Golden Ocean 3Q16 - Results update

Event Update 28 Nov 2016 PDF

Star Bulk Carriers 3Q16 - Results Update

Event Update 25 Nov 2016 PDF

Diana Shipping 3Q16 - Earnings weakness in line with expectations; maintain Neutral view

Event Update 22 Nov 2016 PDF

DS Norden - Company Update

Event Update 17 Nov 2016 PDF

Teekay Tankers 3Q16 - Reduce fair value on asset disposal; maintain Neutral stance

Event Update 17 Nov 2016 PDF

Hapag-Lloyd 3Q16 - Results update - Back to black despite weak top line

Event Update 16 Nov 2016 PDF

DHT Holdings 3Q16 - Results update - Slash our fair value estimate in light of impairments; reiterate Neutral

Event Update 16 Nov 2016 PDF

Euronav 3Q16 - Results update - Weaker rates and high opex erode earnings; reduce fair value

Event Update 15 Nov 2016 PDF

Navigator Holdings 3Q16 - Results update

Event Update 10 Nov 2016 PDF

View more