Asset Allocation
 

Top-down – fundamental analytic and quantitative elements in all phases of the investment process

Our investment process for asset allocation rests on three pillars and can be divided into strategic and tactical components.

The strategic component includes the elaboration of our own philosophy, based upon macroeconomic data, social trends, and political developments, with a temporal horizon of several years. The resulting perspective serves as the highest stage of orientation, from which we derive the asset classes in which we invest over the long term.

For the tactical component, we respond to short-term developments, and we attempt to exploit opportunities and diversification effects among the asset classes.

Fundamental macroanalysis

The basis of fundamental macroanalysis is shaped by macroeconomic data as well as social, demographic, and political developments. In so doing, we attempt to filter the information relevant to us by means of independent research, academic knowledge, and healthy common sense.

Intuition & reason

Intuition is the ability to discern patterns in a specific situation and to align these with one’s own experience. Reason – in funds management – means proceeding in a carefully planned, analytic manner supported by a model.

For us, successful funds management consists of the optimal interplay of both spheres, coupled with healthy common sense.

Quantitative-technical analysis

Quantitative models form the basis for tactical asset allocation. As a complementary instrument, they indicate developments to us that we have not incorporated into our long-term philosophy, and they open up an objective perspective for us, free of subjective opinions.

On this level and on the basis of our philosophy, we attempt to anticipate medium-term developments.

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Eyb & Wallwitz – Intelligent investing