In-depth, independent company analysis
The in-depth analysis provided by our FMM method enables us to evaluate and observe concrete market opportunities for companies. Our research in this area is completely independent and free from conflicts of interest. A three-stage selection process is used to filter out businesses with strong balance sheets that are also stable and offer value. Only at the end, when companies have met our strict selection criteria, do we make actual investment decisions on individual securities.
Several hundred company discussions a year
Before investing in companies, we take the time to check the quality of management very carefully. Does it have enough experience in the industry? Has it overcome times of crisis? Our critical assessment of management includes discussions with company directors in person. Additionally, these conversations often lead to new investment ideas related to a number of industry sectors.
Countercyclical decisions and unconventional ideas
We like making different decisions to the majority of investors, and because of this we have been successful since 1974. When pessimism prevails, we find opportunities. To this end, we maintain a unique database of sentiment indicators as part of the FMM method. DJE Kapital AG has been able to evaluate long-term macroeconomic development more accurately in recent decades on this basis, far removed from the mainstream of financial centres. As a result, we have come across trends before they were recognised by most investors.
Independent of benchmarks
The FMM method allows us to follow an active management approach supported by in-house research that stands out for the speed at which opinions and decisions can be formed. This means we operate independently of benchmarks in the way that investments are divided: the weighting of industries and countries and the selection of securities are in no way connected to the respective index weighting. Such an advantage cannot by leveraged by benchmark funds and passive investment products such as ETFs. At the same time, the opportunity remains to hold cash positions at any time, especially during difficult phases on the stock market.
Systematic risk management
In all phases of our investment process, the FMM method results in a systematic approach to risk management. Investments are only made with a reasonable level of risk and in the knowledge that it is difficult to make up for losses. The avoidance of loss is a top priority before the maximisation of profit. This means we try to anticipate risks before evaluating potential opportunities, pursuing an absolute return approach.