The uniqueness of our approach is that we invest in companies exclusively and not in regions, sectors, commodities or structured products. The key words of our approach are bottom-up, value driven stock picking and transparency. We are active investors in the sense that we do not care about indices or try to marginally outperform them.
We only invest in companies that we know thoroughly. Those are companies with:
In practice, this means that we mainly opt for companies from Belgium, Germany and the Netherlands and occasionally for companies outside this region. We do not invest in companies that are active in real estate, biotechnology, pharmaceuticals or in companies from other continents.
We feel responsible for all our investments and therefore do not invest in investment funds of third parties or in holding companies.
Indirectly we invest in the whole world, but we do this by including companies with worldwide activities in our portfolio. This strategy seems to us a more certain road to success than buying shares in exotic companies from far-away countries.
On the basis of strictly applied investment criteria, we have made a selection of companies which, in principle, are eligible to be included in our portfolios. We call this group of companies our investment universe.
For all companies in our investment universe we make a qualitative and a quantitative evaluation that we update on a regular basis. To enable us to do so we have a large number of company contacts each year.
In our qualitative evaluation we intensively analyze the business model, quality of management, strength of the balance sheet and the opportunities and risks of companies. This process results in a company rating.
Our quantitative evaluation puts a strong emphasis on the cash flows generated by companies. The resulting calculation determines our target price of a company.
From our investment universe we compose portfolios where we pay attention to a good spread of the underlying macroeconomic risks such as natural disasters, economic cycles and political unrest. Our portfolios are liquid, because we only invest in listed companies.
We seek a high degree of transparency. Our customers can follow their portfolio via internet on a daily basis and watch in which companies we invest.
We make limited use of options. We do this only with the aim to reduce the risks.