CEO Confidential
May saw more of a focus on family than work for me, as I spent ten days in Palma, Majorca. However, during this holiday period, I spent a fair bit of time talking to clients, attending team meetings and plotting expansion plans. Nonetheless, it was also filled with much-needed family time and sunshine, a scarce commodity for me based in the UK.
We rented a stunning private villa nestled in the mountains of Calvià, boasting breathtaking views of the Mediterranean. Everything about the villa was perfect. I was so impressed that I arranged a special discounted rate for my clients interested in booking it. Later in this newsletter, I’ll provide a detailed review of the villa and share some photos for anyone considering a relaxing getaway in Majorca.
Looking ahead to June, my primary focus will be expanding our Assets Under Management (AUM). I have scheduled meetings with new clients, other funds, and family offices to elevate Novus Black to the next level. My goal is to reach $30 million in AUM by the end of the year, effectively doubling our current holdings. However, we could far exceed this target with the potential pipeline deals. For now, it’s a “watch this space” situation, but I am committed to surpassing my goals and strengthening Novus Black’s global presence as one of the best private funds in the market.
Final Figures
Novus Black closes May with 6.2%
May concluded with a commendable 6.2% profit, despite a period of heightened caution in the middle of the month. This cautious approach was necessitated by the death of the Iranian President, which sparked renewed fears of conflict in the region. Our strategic response to this geopolitical event ensured that we navigated the uncertainty effectively, maintaining stability and achieving positive returns for our investors.
Trader’s Journal
Foreign Exchange (FX)
The FX markets in May were largely influenced by fluctuating interest rate expectations and geopolitical tensions. The death of the Iranian President heightened concerns over potential conflicts, leading to a temporary flight to safe-haven currencies like the US Dollar and Japanese Yen. However, as inflation rates began to gradually edge down across much of the western world, there was a renewed focus on possible interest rate policy changes. The Euro and the Pound experienced moderate volatility as traders speculated on the upcoming European Central Bank (ECB) and Bank of England (BoE) rate decisions.
Indices
May saw a mixed performance in the indices market. European and UK indices showed resilience, buoyed by decreasing inflation rates and the anticipation of potential interest rate cuts. The US indices, however, experienced a more volatile trajectory, reflecting investor uncertainty about the Federal Reserve’s future policy moves. Despite the mid-month caution sparked by geopolitical events, indices managed to recover, closing the month on a positive note due to improved market sentiment towards the end of May.
Commodities
The commodities market experienced significant fluctuations in May. Crude oil prices were particularly volatile, driven by fears of renewed conflict in the Middle East and the implications for global oil supply. Gold, often seen as a safe haven during periods of uncertainty, saw increased demand and a corresponding rise in price.
June 2024 Market Outlook
Foreign Exchange (FX)
Looking ahead to June, much of the focus will remain on interest rate decisions. The ECB is expected to announce a 0.25% rate reduction, bringing it down to 4.25%. This decision will likely influence the Euro’s performance, with potential implications for the Pound as well. The BoE and Federal Reserve are also set to make their interest rate decisions later in the month, which will be closely watched by FX traders for further directional cues.
Indices
Despite June being one of the shorter months in terms of trading days, we are poised to see continued activity in the indices markets. The anticipated interest rate cuts in Europe and the UK could provide a supportive environment for further gains in European and UK indices. US indices will likely remain volatile as the market digests the Federal Reserve’s policy stance and its impact on economic growth.
Commodities
In the commodities market, oil prices will continue to be influenced by geopolitical developments and supply concerns. With the ongoing uncertainty in the Middle East, crude oil is expected to remain volatile. Gold will likely retain its appeal as a safe haven, especially if market uncertainties persist. Agricultural commodities will continue to be influenced by seasonal patterns and global trade dynamics.
Summary
As we move into June, our primary focus will be on navigating the potential shifts in interest rate policies across major economies. The overall outlook for June is positive, and we are confident in our strong position for future growth, however we need to remain aware that June is one of the shortest trading months with only 20 days.
Beyond Numbers
During the month of May, our efforts focused on two very important areas: control and compliance. These areas enable Novus Black to operate in accordance with our mandate to investors and adhere to regulatory best practices.
We collaborated with Thistle Initiatives throughout the month to review our current processes and financial crime policies. Their initial findings were favourable, highlighting Novus Black’s positive management attitude and compliance culture. Additionally, Thistle Initiatives provided valuable feedback and suggested improvements in certain areas to mitigate risks and promote best practices.
Furthermore, we engaged with Buzzacott regarding our fund reporting. Buzzacott conducted a Reasonable Assurance Attestation on five key questions. They were satisfied with the effectiveness of our processes and will finalise their report in the coming weeks.
The involvement of third parties in these reviews provides immediate reassurance regarding our current processes and offers an independent perspective on areas requiring attention and improvement. The positive outcomes and recommendations will be carefully reviewed and implemented where necessary.
Inside The Engine Room
My role at Novus Black heavily revolves around ensuring the smooth management of each department. This month, I have been dedicated to reviewing our existing partnerships and strengthening relationships with key stakeholders. Following the thorough reviews by Buzzacott and Thistle Initiatives, alongside invaluable feedback from our clients, we are implementing important structural changes to enhance the governance of the company. These changes will bring tighter controls around compliance, client communications, and risk management from both trading and business perspectives.
The governance reviews have highlighted areas where we can improve, and we are committed to making these enhancements. By tightening our controls and processes, we aim to ensure that Novus Black operates with the highest standards of integrity and efficiency.
In parallel with these governance reviews, we are on the verge of launching our US fund, Novus Black Atlantic. This significant milestone is the result of many long hours and hard work with our US partners to ensure compliance and feasibility in the US market. The expansion into the US will not only strengthen our brand but also increase our Assets Under Management (AUM). This, in turn, will make profit generation less risky by leveraging smaller portions of the overall capital.
As part of our growth strategy and our ongoing partnership with Thistle Initiatives, we are committed to educating our clients about the risks associated with Financial Crime. In the upcoming newsletters, we will be inviting all clients to participate in voluntary courses on Financial Crime awareness. These courses are designed to ensure that each client is managing their investments safely and avoiding unnecessary risks.
Controlling Risk
Written by Senior Risk Manager, Josh
Solid risk management is crucial in today’s financial markets, which experience wild swings due to geopolitical tensions and economic changes. Staying on top of central bank policies, interest rates, and political events helps traders anticipate market movements and make informed decisions.
Effective risk management involves using stop-loss orders and smart position sizing. Stop-loss orders automatically close trades that move too far in the wrong direction, capping potential losses. Position sizing means investing only a small portion of trading capital in each trade, avoiding significant impacts from single failing trades and keeping the overall portfolio intact.
Diversification and emotional discipline are also vital. Diversifying trades across multiple currency pairs, commodities, and indices, reduces the risk of a significant loss if one pair declines. Emotional discipline means sticking to the trading plan and avoiding impulsive decisions driven by fear or greed. By staying calm and rational during market volatility, we adhere to our risk management strategies and make decisions based on solid analysis, ensuring Novus Black thrives and grows in current market conditions.
As Novus Black’s new Senior Risk Manager, I aim to implement the most robust and modern risk management strategies. I am committed to regularly reviewing and updating our processes to adapt to market changes, leveraging my experience to identify risks and develop robust mitigation strategies. Looking ahead, I aim to ensure that Novus Black remains resilient and thrives in the evolving financial landscape, positioning us all for long-term success.
HAFGB Charity Golf Day
Written by Junior Sales Executive, Charlie Carter
On the 23rd of May, I travelled to Bowood PGA Golf Course to participate in the HAFGB charity golf day, proudly sponsored by Novus Black. This marked my first event as a Novus Black employee, and I thoroughly enjoyed the experience.
Novus Black was honoured to support the charitable efforts providing much-needed relief to those affected by the ongoing atrocities in Ukraine. The charity had front-line helpers present at the event, and listening to their stories and hearing about the gratitude from those receiving aid highlighted the significant impact being made. This, in turn, encouraged generous bidding at the charity auction.
The Novus Black team had a fantastic day, discovering strategic team play that led to a successful round of golf. We finished with an impressive 91 points, securing second place overall. On a personal note, I was thrilled to be involved and even prouder to win the individual competition with 43 points. This was a significant achievement and a wonderful introduction to Novus Black.
Overall, the day was not only fun and successful but also contributed to a great cause, supporting the incredible work that HAFGB is doing.
Back in the office, I am eager to delve deeper into the business, build and nurture relationships, and contribute as much value to Novus Black as possible. I look forward to meeting many of you in the near future and working together to ensure a positive and warm environment.
Member Offers – Prefered Partners
Carlos’s Villa In Majorca (Written by Steve Hill)
In addition to offering our clients exceptional investment opportunities, we plan to create a partners page where George and I will personally recommend restaurants, products, and locations we visit. This page will feature exclusive member-only discounts as a token of our appreciation for your years of loyalty to the Novus Black brand.
So, to start this new section, I would like to introduce Carlos. Like all of you, he is also an investor in Novus Black and owns one of the best villas in Majorca, Cala Vinyes.
The villa was Carlos’s personal project, creating a dream home for himself and his family. Now that his family has grown up, he allows a select few to rent it for holidays. The villa is spectacular and is located within the mountains of Calvia. As soon as the electric gates of the property open, you are greeted with a stunningly designed and traditionally luxurious villa. Its glass front doors allow you to see the infinity pool and catch a glimpse of one of the best views of the Mediterranean you will ever see.
Upon entering the villa, you’ll find a great mix of modern amenities and traditional Spanish marble and tiles. The villa boasts 700 square metres and is located on 2,200 square metres of stunning real estate. It has five spacious bedrooms equipped with everything your family will need, including the most fantastic jacuzzi right in front of the Mediterranean. The showstopper, however, is the terraces, one of which is home to a large heated infinity pool that offers uninterrupted stunning sea views. My family and I spent most of our time in this area. The villa is very private and detached, making it the perfect place for relaxing without worrying about onlookers. Just outside the villa, about 100 metres away, you’ll find a friendly local restaurant and a couple of shops, and just 300 metres away is a stunning little beach called Cala Vinyes Beach. If you want to explore more of the area, you can reach Magaluf in just a 15-minute walk or Palma Nova in just 45 minutes. The villa’s location is perfect—it’s private and secluded, but within a short walk, you have all the restaurants and shops you will ever need. While there, I booked a private chef called Lucia, who was incredible and provided great value. I also booked a private cinema, which was set up right by the pool—again, great value for money and a great family experience.
I can not praise Carlos enough. He is an amiable guy who goes out of his way to ensure his clients’ happiness, a sentiment we both share! Should you wish to know more about this villa, send me a WhatsApp message, and I will be more than happy to share Carlos’s details with you, as well as the details for the cinema and chef.
