The Fund aims to achieve an above-average risk-adjusted performance by investing in fundamentally sound equity securities of listed companies worldwide which have come down a lot and/or are undervalued. The investment strategy follows a contrarian style. Only listed stocks are taken into account which, as a rule, represent a market capitalisation of at least EUR 500 million at the time of purchase. The selection process is carried out in 3 steps. First, the markets are analysed according to certain criteria. These may be changed or adapted depending on the market situation. For example, we might consider stocks valued at 25% below the 200-day average and/or 50% below their 5-year high. The P/E should be lower than 20, with the exception of Japan; profit estimates should show positive growth. Following this first screening, stocks are then further analysed in the course of desk research. In a next step, chart analysis is used in order to decide whether or not to place a buy order. A normal position should not exceed 5% of Fund assets. As a rule, stocks will be sold after market prices have risen by 50%. When prices have fallen by about 25%, the position is doubled if the underlying assumptions and the evaluation have not changed. In addition to these guidelines, trades may be realised on the basis of certain portfolio considerations.
With regard to diversification across countries or sectors, Fund Management has an opportunistic approach. However, from a geographical point of view, the stock selection is centred on the US and Europe, which together represent more than 60% of Fund assets, whereas Asia with heavyweight Japan account for 30% and the rest of the world for 10%. The differences in weighting between the various industry sectors depend on the overall market situation. However, no single sector shall exceed 30% of Fund assets.