Abu Dhabi Ocean Racing's "Azzam" had a good view of Groupama, the French entry, during the in-port race at Itajai. Unfortunately it was from a trailing position.
Abu Dhabi Ocean Racing's "Azzam" had a good view of Groupama, the French entry, during the in-port race at Itajai. Unfortunately it was from a trailing position.
Abu Dhabi Ocean Racing's "Azzam" had a good view of Groupama, the French entry, during the in-port race at Itajai. Unfortunately it was from a trailing position.
Abu Dhabi Ocean Racing's "Azzam" had a good view of Groupama, the French entry, during the in-port race at Itajai. Unfortunately it was from a trailing position.

Groupama seize the initiative for Leg 6 with in-port race win


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Team Telefonica blew their chance of increasing their overall lead in the Volvo Ocean Race when they sailed the wrong course on Saturday while heading the in-port race in Itajai, Brazil.

That opened the door for Groupama to move to within striking distance of the leaders as they scored six points with their maiden in-port victory taking them to 133 points, just 16 behind the Spanish boat, Telefonica.

Camper with Emirates Team New Zealand claimed second place and five points in Itajai, finishing just one minute and five seconds ahead of Puma Ocean Racing, who clawed their way back after a penalty in the opening minutes to finish third.

Abu Dhabi Ocean Racing's Azzam finished fourth, scoring three points, while Telefonica were unable to recover from their mid-race error to finish last, claiming just two points.

Team Sanya did not start and will rejoin the race in Miami.

The fact that Azzam was even able to race is an achievement in itself.

The yacht did not arrive in Brazil until Thursday when it was transported by a cargo ship, and the shore crew worked day and night to repair the hull damage which forced them out of Leg 5.

Abu Dhabi Ocean Racing's Rob Greenhalgh told the Volvo Ocean race website before the in-port race that the team had no worries about the structural repairs but expected there to be some niggles to get over given the super fast turnaround.

"I am sure there will be problems during the race but I am also sure we will overcome them," he said.

Storm clouds off the coast of Itajai unleashed rain and an unsteady southerly breeze that finally enabled the downwind start that was marred with two protests against Puma within seconds.

While Groupama sailing team and Abu Dhabi Ocean Racing were occupied with forcing Puma to do a penalty, a 360-degree turn, Camper took the lead.

But Telefonica had moved to first place at the top mark, having avoided all of the drama by racing a clear course from the pin end.

The overall race leaders were followed by Camper, who trailed by less than a second, then Groupama and Abu Dhabi Ocean Racing, with Puma in last place, but by no means written off, just 0.28 seconds behind the leaders.

Telefonica led at the second mark, but the remainder of the fleet reshuffled, with Groupama manoeuvring into second place, followed by Camper in third, while Puma jumped into fourth ahead of Abu Dhabi Ocean Racing.

After a short two-sail reach to the third mark Telefonica made a terrible mistake that cost them the lead at the fourth buoy, rounding the wrong mark and giving Groupama control.

While Telefonica scrambled to return to the correct route, race officials shortened the course at the fifth-mark rounding to the advantage of Franck Cammas and his crew.

Groupama claimed victory in 46 minutes, 27 seconds.

Camper with Emirates Team New Zealand followed in second place 45 seconds behind, followed by Puma Ocean Racing, Abu Dhabi Ocean Racing and Telefonica.

The sixth leg race to Miami starts on Sunday.

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Power: 398hp from 5,250rpm
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On sale: December
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Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

The specs: 2017 Dodge Ram 1500 Laramie Longhorn

Price, base / as tested: Dhxxx
Engine: 5.7L V8
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Power: 395hp @ 5,600rpm
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Fuel economy, combined: 12.7L / 100km

RESULTS
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Results:

5pm: Baynunah Conditions (UAE bred) Dh80,000 1,400m.

Winner: Al Tiryaq, Dane O’Neill (jockey), Abdullah Al Hammadi (trainer).

5.30pm: Al Zahra Handicap (rated 0-45) Dh 80,000 1,400m:

Winner: Fahadd, Richard Mullen, Ahmed Al Mehairbi.

6pm: Al Ras Al Akhdar Maiden Dh80,000 1,600m.

Winner: Jaahiz, Jesus Rosales, Eric Lemartinel.

6.30pm: Al Reem Island Handicap Dh90,000 1,600m.

Winner: AF Al Jahed, Antonio Fresu, Ernst Oertel.

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Winner: Empoli, Pat Dobbs, Doug Watson.

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Winner: Shivan OA, Patrick Cosgrave, Helal Al Alawi.

How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

If you go

Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.

Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com

A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com