Imperium Capital Publication

Global Matters Weekly – 28 March 2022

It’s lights out and away we go

by Matt Connor

The first race of the 2022 Formula One season didn’t disappoint, as Sir Lewis Hamilton sought a strong start to his record-breaking 8th World Championship in Bahrain. Many were quick to write off the Mercedes man, due to a lack of pace in free practice and qualifying compared to rivals Ferrari and Red Bull. Despite the negative outlook, Hamilton still managed to achieve a podium. As value investors we often view negative sentiment around a company as a potential opportunity to capitalise on irrational valuations

Market Snapshot

  • Global equities increased by +1.3% last week
  • At the NATO summit, leaders said in their statement that the Russian use of chemical or biological weapons would result in severe consequences
  • Brent crude increased by +11.8% to $97.9 a barrel
  • Gold increased by +1.9% to $1889.3 per ounce

Viewpoint – February 2022

“There are decades where nothing happens; and there are weeks where decades happen.” Lenin

The quote is attributed to Lenin shortly before the Russian revolution. The week which started on February 24th, when Russia invaded Ukraine, is one of those weeks. Russia’s aggression and the unfolding humanitarian disaster have shaken the West to its core. The self-indulgent complacency spanning three decades since the fall of the Berlin Wall and the break-up of the Soviet Union has hit the brick wall of an existential threat to the liberal order of the democratic free World.

Global Matters Weekly – 21 March 2022

Metaverse: real estate

by Jackson Franks

The largest ever land acquisition took place towards the end of last year; it’s value:US$2,400,000. You may be thinking I’m missing a few zeros here, but what I haven’t yet mentioned is that this transaction does not relate to the real world but instead refers to’s purchase within the metaverse.

In November last year,’s subsidiary, Metaverse Group, paid more than US$2.4m for a plot of virtual land in the fashion district of Decentraland, one of several growing platforms within the metaverse. Although this amount may seem obscene to many readers (including myself), the more eye-catching fact here is that it accounted for less than 50bps of real estate sales within the metaverse for 2021

Market Snapshot

  • Global equities rose +6.0% last week
  • The Fed raised interest rates by 25 basis points ending the near-zero rates of the pandemic era
  • Brent crude fell -4.2% over the week to $107.9 a barrel
  • Gold returned -3.4% to $1921.6 per ounce

Global Matters Weekly – 14 March 2022

Mind the Gap

by Mark Wright, CFA

The latest elevated CPI print of 7.5% has spooked investors this year, triggering volatility in both bond and equity markets. In trying times, it sometimes helps to take the long view. In a recent paper the Bank of England has taken this advice to the extreme, looking back 800 years to the 14th century to calculate the average global GDP-weighted inflation rate of just 1.51%1. Unfortunately, 800 years is not a particularly sensible investment horizon for most people, but there are plenty of other more relevant periods for us to examine when considering the importance of current economic events

Market Snapshot

  • Global equities declined -1.9% last week
  • The Russian invasion continues with 2.5M Ukrainians having fled the country
  • Brent crude fell -4.6% to 118.11 a barrel, and the USA banned oil imports from Russia
  • Gold gained +0.9% to $1970.7 per ounce

Global Matters Weekly – 7 March 2022

Goodbye to Greenwashers

by Michael Clough, CFA

“For fund selectors the key questions are: who is genuine and how do they stack up versus a burgeoning list of peers?”

Market Snapshot

  • Global equities fell -2.8% in a turbulent week for world markets
  • President Vladimir Putin announced that the war will continue until Ukraine accepts his demands and halts resistance, dimming hopes for a negotiated settlement
  • Brent crude rose +20.6% to $118.1 a barrel
  • Gold rose +4.3% to $1970.7 per ounce

Global Matters Weekly – 28 February 2022

Style Box

by Tom Delic

“Boxing styles will ultimately determine how exciting a fight is. This is not too dissimilar to investment styles, where some work better together than others. “

Market Snapshot

  • Global equities fell -0.1% last week
  • Last week saw major developments in Ukraine with Russia launching a full-scale invasion of the country. Western governments have moved to place various sanctions on Russia
  • Brent crude returned +4.7% over the week to $97.9 a barrel
  • Gold returned -0.5% to $1889.3 per ounce