Core competence: security selection
Profitably exploiting market inefficiencies.
In our security selection process, we implement findings from Behavioral Finance. We are proud to occupy an excellent position in the European financial services sector. In order to maintain this leading position and make use of these findings on behalf of our clients, we take advice from top researchers.
One of the key findings of this still young science is that investors influence one another through the exchange of information. This can give rise to market inefficiencies in the form of trends and price distortions (e.g. the speculative bubble in the telecommunications, media and technology sectors at the end of the 1990s).
The combination of quantitative analysis of market data (e.g. technical analysis) with qualitative aspects (e.g. macroeconomic expectation analysis, systematic assessment of economic news) enables us to identify market inefficiencies caused by irrational actions of investors at an early stage and to profitably exploit these in active strategies.
Simply put, the selection of securities in the equity process can be broken down as follows:
- analysis of the strategic trend profile at the level of the market as a whole
- assessment of the attractiveness of individual sectors
- portfolio construction via selection of securities
Essentially, the selection of securities in the bond process comprises the following steps:
- integration of macroeconomic factors with behavioural finance findings
- trend analysis using indicators and technical aids
- evaluation process, portfolio construction and determining active positioning