The investment approach
We invest in companies with special competitive advantages that are traded at a reasonable price.
And we use our many years of experience with cyclical fluctuations in the valuation of investments for favourable purchasing conditions. In pursuit of our long investment horizon, we are able to counter-cyclically exploit mispricing caused by short-term factors. Potential investments are ranked and selected according to their intrinsic value.
We look for suitable investment instruments throughout the entire capital structure of a company. In addition to equities and senior bonds, subordinated or convertible bonds often have interesting yield/risk profiles, as they usually offer additional yield opportunities due to their lower marketability or regulatory restrictions.
Our investment selection is based on model-based, fundamental analyses. The main criterion is the achievement of an absolute positive return over a longer period of time. We therefore prefer relatively predictable regular income to possible increases in prices.
If the investment in securities of individual companies does not meet our strict criteria, we invest in index funds or in excellent active managers.
To control our portfolio risks, we observe predefined risk budgets in the ongoing monitoring of Investments.