Key Takeaways
- • Annapurna Capital CIO Marshall Brandt says the firm's flagship strategy is driven by political and policy regime change, is truly global, and has a negative correlation to the SPX.
- • Annapurna targets low volatility and high Sharpe ratio, with a historically low margin-to-equity of about 6%, letting investors choose their own leverage through SMAs.
- • Brandt argues that middle countries will grow faster and be more dynamic than the US as the post-WWII order ends, expanding the opportunity set.
- • The firm reports almost no home-country bias and points to Korea, where a February 2025 trip led to a thesis that market reforms would make it the best-performing index from 2025.
- • Brandt states that the Korea thesis was not a bet on memory stocks, arguing that reforming markets are usually rising markets.
Summary
Annapurna Capital CIO Marshall Brandt, in an interview, described the firm's flagship strategy as driven by political and policy regime change and as truly global. He said trend and momentum strategies typically struggle during regime changes, whereas Annapurna's approach has been a source of alpha while maintaining a negative correlation to the S&P 500 (SPX).
Brandt said the firm aims for low volatility and a high Sharpe ratio, and that its historically low margin-to-equity of roughly 6% allows investors to select their preferred leverage through separately managed accounts (SMAs). He said some investors treat the strategy like high-yield bond returns with immediate liquidity, while others want typical global macro leverage.
Looking ahead 12 to 18 months, Brandt said the opportunity set has expanded since the end of the US-led post-World War II order. He argued that middle countries, as they become more self-reliant, will grow faster and be more dynamic than the US. As a US-based manager, Annapurna reports almost no home-country bias and rarely trades in-country assets. Brandt said the firm focuses on macro developments such as Canada's recently passed budget and the impact of upcoming French elections on French debt, rather than debates over artificial intelligence.
Brandt cited Korea as the investment decision he is most proud of. Annapurna travelled to Korea in February 2025, meeting government officials, US diplomats and companies, and formed a thesis that the country's market reforms would make its index the best performer starting in 2025. Brandt stressed the position was not a bet on memory stocks, and said reforming markets are usually rising markets.
Brandt said the firm aims for low volatility and a high Sharpe ratio, and that its historically low margin-to-equity of roughly 6% allows investors to select their preferred leverage through separately managed accounts (SMAs). He said some investors treat the strategy like high-yield bond returns with immediate liquidity, while others want typical global macro leverage.
Looking ahead 12 to 18 months, Brandt said the opportunity set has expanded since the end of the US-led post-World War II order. He argued that middle countries, as they become more self-reliant, will grow faster and be more dynamic than the US. As a US-based manager, Annapurna reports almost no home-country bias and rarely trades in-country assets. Brandt said the firm focuses on macro developments such as Canada's recently passed budget and the impact of upcoming French elections on French debt, rather than debates over artificial intelligence.
Brandt cited Korea as the investment decision he is most proud of. Annapurna travelled to Korea in February 2025, meeting government officials, US diplomats and companies, and formed a thesis that the country's market reforms would make its index the best performer starting in 2025. Brandt stressed the position was not a bet on memory stocks, and said reforming markets are usually rising markets.
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