Central bank bouncy house The relaxed monetary policy of the central banks of all big countries has inflated the prices of all asset values. We have already discussed extensively what that means in our first article of the “chronic unease” series. The side effects of the “Central Bank bouncy house” made the search for inexpensive investment objects—let alone the search for a steal—downright pointless....

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1. What is important for fund investorsThe portfolio continues to be hedged. The net stock quota was at 0% in late October. Capital preservation trumps and is more important than “buy the dip.”The stocks are hedged. But the capital is invested over various currencies. As of late October, 61% of the fund were invested in the Euro region. Currently, the quota of euro investments is only at...

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Last night Ralph Acampora explained in an interview with MarketWatch that the current market situation reminds him of 1987. We’ll see whether or not Acampora is right. As I am writing these lines, some colleagues are already pointing out to me that he has been off so often. Sure. True. As investors with a private-equity approach, our decisions are not based on charts alone. But charts are an important...

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It has been a bumpy year for the stock markets so far, and October has been serving the same thing it has brought in difficult situations in the past: price declines. Still missing are volatility and panic, but those may already have been delivered as we are typing these lines or when you read them. 1. IMF: “Only 9 out of 212 recessions were predicted accurately” You may not believe...

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What is important for fund investorsThe portfolio is mostly hedged. However, because we have hedged much through Eurex single stock futures, the hedging is much “closer” to the stocks we hold than it was in the past. This significantly reduced the risk of suffering loss on the hedging that is not compensated by price gains in stocks when the market recovers. Our primary goal as stock fund is currently...

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Shaky September is the summary of what stock exchange legend David Tepper just said in a long interview on CNBC on the occasion of the inauguration of the building complex at Carnegie Mellon University in Pittsburgh donated by him. David Tepper is an American hedge fund manager, multi-billionaire, and in 2012 and 2013 was the highest-earning hedge fund manager (Source: Reuters). His recommendation...

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I. What is important for fund investorsThe development of the fund price in 2018 continues to disappoint, especially when compared to previous years. Since the last week of July, in which we intensely adjusted the portfolio, the fund has been developing better than the DAX. But still, the DAX and the fund price continue to fall.Based on our previous assessment—which we still stand by at this...

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In risk management we use different systems providing indicators so that we can get an idea of the markets that goes beyond a superficial analysis of the situation. Of course there‘s no master indicator. The situation as far as information goes is like that in the cockpit of an airplane with numerous instruments. Some are used more regularly, others less. But in the end—just like in an airplane—it...

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I. What is important for fund investorsThe reporting season—especially in the U.S.—took a promising course. As a result, numerous stocks in the fund (e.g., Adidas, Lam Research, Teck) from all topic areas have experienced steep upward spurts. The temporary slump of the FANG stocks was absorbed quite well by the markets so far thanks to an intense sector rotation. The one-sided, rather emotional...

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I. FANG The English term for vampire teeth is also the acronym of the U.S. stocks that were most popular in the first half of 2018 F(acebook)A(mazon)N(etflix)G(oogle). Source: shutterstock, leo.org The price development in the first half year was phenomenal.A rise in prices of over 50% in six months—that doesn’t happen every day. FANG stocks making for more than 95% of the total price gain of...

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