Unlike typical independent asset managers (IAM) that heavily rely on retrocessions, Paragon Capital Management has found success with its discretionary-based business, a model that may not be suitable for every private banker. That strategy is also helping it to deliver strong returns for clients. The firm’s flagship Paragon Alpha I fund gained 45.62% for 2023, beating top-performing asset classes.

In a year marked by challenges and volatility, PAF I has not only navigated but excelled. The fund recorded an annualised return of 11.17%, placing it 17th out of 306 funds in its category according to Eurekahedge.

As 2024 unfolds, we are excited to share our market outlook, building on a phenomenal 2023 where we saw a 35% increase in Assets Under Management (AUM). In our view, the major reset in U.S. monetary policy over the past two years has created a more conducive backdrop for global equities. While short term volatility remains a constant, even for quality stocks, we see these fluctuations not challenges but as opportunities to create value for our investors over the longer term.

Sean Quek, Senior Portfolio Manager of Paragon SAGE Fund, discussed the traits he looks out for in quality companies, and where the magnificent 7 tech stocks rank on his list.

Carinn Neo, Senior Portfolio Manager at Paragon Capital Management Singapore, opined to lengthen credit duration as softer US economic data may lead the Fed to start cutting rates earlier than investors anticipated and push yields lower.