Characteristics
In-depth & independent - our analysis process
Our in-depth analysis based on the FMM methodology enables us to identify and evaluate market opportunities for companies. Our research is completely independent and free from any conflicts of interest. A three-stage selection process is used to filter out comapnies with strong balance sheets, solid business models and attractive valuations. Only companies that meet our strict selection criteria are considered for investments in securities.
Several hundred conversations with companies
Before investing in companies, we take the time to assess the management. Does it have enough experience in the industry? Has it been able to manage well during a crisis? Our critical assessment of management includes discussions with company directors in person. Additionally, these conversations often lead to new investment ideas in various business sectors.
Countercyclical decisions and unconventional ideas
We are not afraid to make decisions against market consensus. It's one of the reasons for our sucess - since 1974. When there is pessimism, we find opportunities. To do that we maintain a unique database of sentiment indicators as part of the FMM methodology. DJE Kapital AG has been able to evaluate long-term macroeconomic developments accurately in recent decades using our methodology. We carry out our own research and are less influenced by the consensus of the world's biggest financial centres. As a result, we have often come across trends before other investors.
Independent of benchmarks
The FMM methodology allows us to follow an active management approach, which is supplemented by our in-house research. Thanks to our unique process, we can quickly form opinions and make decisions. This means we invest independently of benchmarks. The weighting of industries and countries and the selection of securities is in no way based or influenced by the respective index weighting. This can be an advantage compared with benchmark funds and passive investment products such as ETFs. At the same time, we have the option to build up cash positions at any time, especially during difficult phases on stock markets.
Systematic risk management
In all phases of our investment process, the FMM methodology guides our systematic approach to risk management. Investments are only made with a reasonable level of risk and with the awareness that it is difficult to make up for losses. Avoiding or limiting losses takes priority over maximising profits. This means we try to anticipate risks as we evaluate potential opportunities. The aim is to generate a positive absolute return.