DISCRETIONARY MANAGEMENT

Our primary long-term objective is to preserve and grow our clients’ wealth.

  • Asset Allocation

    We believe that active asset allocation is the best way to deliver those returns. Over the long term, returns are largely determined by managing allocations across different asset classes rather than picking individual securities.

    We use the largest practical investment universe. Our universe comprises all liquid and transparent instruments in fixed income, equities and currencies in the major developed and emerging markets.

    We formulate an investment thesis that encapsulates our 'Big Picture' analysis and drives the asset allocation process.

    From our investment thesis we derive strategies for different asset classes. It defines the framework from which we start to explore opportunities in various asset classes. This model creates a process that strives to combine top-down and bottom-up analysis in a consistent manner.

  • Risk Management

    Investment Management is the management of risks, not returns.

    Whilst we focus to identify the most attractive risk-adjusted investment opportunities it is crucial to limit the impact of large drawdowns. Buying overvalued securities leads to a permanent impairment of capital and losing positions usually keep detracting from overall returns for quite some time. Avoiding these pitfalls greatly enhances returns over the long term.

    We manage uncertainty risks by applying hedges and changing cash positions - cash is an underappreciated asset class. Issuer risks are addressed by diversification across industries and geographies and the avoidance of illiquid investments. We apply stop levels to our positions in order to remove the emotional element of investing and weed out performance detractors.