We pursue an opportunistic investment style within a given asset class. We are primarily value-oriented investors, with a focus on the sustainability of a company’s business model and the value of its cash flow. We have been following this approach since our company was founded. Our investment strategies are not pegged to any particular market index, nor are we under any pressure to fulfil investment quotas. Our main objective is to preserve capital and generate long-term performance – and we use market inefficiencies, both at the asset class and security level, to achieve it.
Executing our investment strategies starts with macroeconomic analysis, which includes selecting key economic indicators and assessing their impact on financial markets. We do our own research as well as analysing third-party data. As a second step, we evaluate the attractiveness of individual asset classes based on largely proprietary fundamental and technical models. Third, we create a portfolio, seeking best-possible diversification, which can be achieved by applying various investment styles and global risk factors. This rather risk-oriented approach is based on the fact that extreme events occur more frequently than accounted for by financial mathematical models.
Even as asset allocation and portfolio structuring is based largely on proprietary mathematical models, our investment approach is driven by the knowledge that ratio (models) and intuition (specific experience) go hand in hand. Especially in extreme events, which require resolute and fast decision-making, experience often counts for more than mathematics.
We have been including for our investments their sustainability rating on the basis of ESG criteria (ESG= environment, social und governance) in our investment decisions for our funds and other portfolios.
The sustainability rating are created by the sustainability rating agency Sustainalytics, taking into consideration a variety of individual criteria, which are grouped into the categories "environment", "governance" and "social". In addition to the so-called ESG criteria, exclusion criteria are also integrated into our investment approach. Applying exclusion criteria ensures that, as a matter of principle, no investments provided by us can flow into companies which, from our perspective, are likely to have unacceptable negative impacts on the environment, social conditions and governance.