Look, I love to think up whacky themes that have the ability to play out.
My big bet is on infrastructure…
But a UK specific bet is a real funny one.
LONG ASYLUM SEEKERS.
Yeah, you might think I’m mad for this, but truly, this is a profitable trade.
Here’s the mini-basket…
The stocks and their market cap weights are in this equation…
SRP*0.5030+MTO*0.4303+MER*0.0667
(SRP = Serco, MTO = Mitie ans MER = Mears Group)
You can see the FTSE has done 15% this year.
This asylum seeker basket?
50%.
It’s made up of Serco, Mitie and Mears Group, the three names that provide contracted services to the government for asylum seeker facilities.
Now you might be thinking, ‘this is awful. How can you profit from this?’
Well, I don’t care.
It’s profitable and the UK government truly will not stem this tide any time soon, so it’s a valid theme to trade.
Note, the basket is market cap weighted, with the largest position in Serco, followed by Mitie and then Mears.
Sometimes, great positions are staring at you right in the face.
As Tim said in the Academy chat yesterday…
Naturally AirBnB isn’t UK specific, but you can see the divergence in this theme versus private sector accommodation…
AirBnB is DOWN 12 percent this year.
Let me know your thoughts by hitting reply, and as always, if you want to book a call with me to discuss the Academy, you can grab a slot in my Calendly.