Thalassa 'well positioned' amidst period of market volatility

Investment group Thalassa Holdings said on Monday that it was "well positioned" going into the current period of market volatility, through being both long in cash and hedged through a combination of different strategies.

However, Thalassa did highlight that its hedges could only partially offset the impact on long holdings of a prolonged major market correction given that it was set up as a net long buyer of undervalued assets.

The AIM-listed group also said it was convinced that politics and medicine were "the worst of bedfellows" and stated that the World Health Organisation was "woefully understating" the implications and severity of the current Wuhan coronavirus outbreak.

"Given that the only certainty of the coronavirus is that the world does not know exactly what it is, where it came from or how to treat it, one doesn't have to be a rocket scientist to suggest that the world should prepare for the worst and hope for the best rather than just hoping it will miraculously disappear," said chairman Duncan Soukup.

While Soukup said Europe's decision to keep borders open was "clearly understandable", he added: "If history teaches us anything, the world was slow to react to both the SARS and Ebola outbreaks and history will probably repeat itself with the current coronavirus outbreak."

Thalassa said it would maintain its hedge positions, continue to develop its core holding and "prepare for the worst whilst hoping for the best".

As of 1055 GMT, Thalassa shares were down 0.83% at 59.50p.