Confucius didn’t say “One Picture Worth Ten Thousand Words" but here's some charts anyway...

Apparently, Confucius didn’t say “One Picture Worth Ten Thousand Words” after all. It was an advertisement in in a 1920s trade journal for the use of images in advertisements on the sides of streetcars. Even without the credibility of Confucius behind it, we think this saying has merit. Starting this month, each month we will share a few charts or images we consider noteworthy.

This month we kick off with charts covering a reversal in fund flows in Australia, metrics on two companies in the Dragonfly Fund portfolio, Citigroup's neat illustration of market liquidity, an illustration of the power of price-to-earnings multiple expansion and Star Wars viewed through the eyes of a volatility trader.

Equity Fund Country Flows - Australia (USD)
Source:, EPFR Global

Rhinomed (RNO) continues to scale up quarter-on-quarter
Source: RNO’s “Investor Update - August 2018”

Empired (EPD) - EV/EBITDA (next 12 months consensus) over past 5 years

EV/EBITDA = Blue | Share price = Red

Source: Sentieo

“With no depth, the market is vulnerable to gapping”
Source: Citigroup, “When the marginal buyers go missing”, July 2017

Source of returns for value stocks (in the US)
Source: OSAM, Factors from Scratch, July 2018

Convexity in a Galaxy Far Far Away
Source: Artemis Capital Management LP, Dec 2016

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