[{"data":1,"prerenderedAt":455},["ShallowReactive",2],{"en-themen-gedanken/quartalsbericht-3q2021":3,"news-articles//en/themen-gedanken/quartalsbericht-3q2021-v-0-0-0":177},{"data":4,"headers":154},{"story":5,"cv":147,"rels":148,"links":153},{"name":6,"created_at":7,"published_at":8,"updated_at":9,"id":10,"uuid":11,"content":12,"slug":140,"full_slug":141,"sort_by_date":24,"position":142,"tag_list":143,"is_startpage":28,"parent_id":144,"meta_data":24,"group_id":145,"first_published_at":8,"release_id":24,"lang":46,"path":24,"alternates":146,"default_full_slug":24,"translated_slugs":24},"Quartalsbericht 3Q2021","2026-09-08T13:55:35.098Z","2026-09-08T14:08:24.653Z","2026-09-08T14:08:24.670Z",217850409401941,"9b8c6e89-dd60-4c93-8770-12366871ed20",{"seo":13,"_uid":20,"date":21,"image":22,"title":15,"category":29,"sections":49,"component":139,"description":19,"disablePrerender":28},{"_uid":14,"title":15,"plugin":16,"og_image":17,"og_title":15,"description":18,"twitter_image":19,"twitter_title":15,"og_description":18,"twitter_description":18},"7b23b9c8-9612-43a5-8317-b1aea1682082","Quarterly Report 3Q2021","seo_metatags","https://a.storyblok.com/f/294930226098899/1200x627/f816024345/sg_2q2021_1200x627_linkedin.jpg","Unprecedented programs of money creation by the world’s major central banks have been in place starting with the US subprime crisis in 2007/8. One unintended effect, we believe, has been a somewhat confused picture among traders and investors about what constitutes those equity investments that represent enduring value and others that largely move up or down in price based on the hunches, moods and whims of the market. ","","c8175dee-395a-4b76-ac6a-e1af1c6cf179","2021-10-13 00:00",{"id":23,"alt":19,"name":19,"focus":24,"title":19,"source":19,"filename":25,"copyright":19,"fieldtype":26,"meta_data":27,"is_external_url":28},217846184569642,null,"https://a.storyblok.com/f/294930226098899/1230x820/5996014622/3q21_istock-480863309_bw_1230x820.jpg","asset",{},false,{"name":30,"created_at":31,"published_at":32,"updated_at":33,"id":34,"uuid":35,"content":36,"slug":39,"full_slug":40,"sort_by_date":24,"position":41,"tag_list":42,"is_startpage":28,"parent_id":43,"meta_data":24,"group_id":44,"first_published_at":45,"release_id":24,"lang":46,"path":24,"alternates":47,"default_full_slug":24,"translated_slugs":24,"_stopResolving":48},"Ansätze","2026-09-08T07:02:24.537Z","2026-09-08T07:04:01.462Z","2026-09-08T07:04:01.471Z",217748867256032,"fb83204a-bfa7-489a-a1be-af337047abde",{"_uid":37,"name":30,"component":38},"902616b3-93e7-4c8e-b9c3-0251db855bf4","DatasourceNewsCategory","ansaetze","en/settings/datasources/news-categories/ansaetze",-40,[],217748407901900,"5a5843a6-ace7-4ede-8811-3b83eb1fb7e5","2026-09-08T07:02:26.727Z","en",[],true,[50],{"_uid":51,"content":52,"component":137,"backgroundColor":138},"35a38288-5ab0-48ea-813e-2c1b7402ab90",[53,58,74,77],{"_uid":54,"text":55,"htmlTag":56,"fontSize":56,"component":57},"3eba46df-92e8-49de-8c0e-000336d1a89c","Review","h2","AtomTextHeading",{"_uid":59,"html":60,"author":69,"fontSize":70,"component":71,"authorRole":72,"authorCompany":73,"showAuthorAlsoOnBottom":48},"e0bb4112-b1ca-4524-8ec2-ab9c375b66d4",{"type":61,"content":62},"doc",[63],{"type":64,"content":65},"paragraph",[66],{"text":67,"type":68},"Market participants are again debating how the so-called “tapering” in the degree of liquidity injection by the major central banks will reverberate throughout the broader financial markets. Meanwhile, monetary policies in the leading economies are signaled by their respective officials to remain amply accommodative. Whether we like it or not, these circumstances have gradually led to the accumulation of excess liquidity in particular types of assets. In the section below we delineate how we circumvent these areas.","text","Gregor Trachsel","lead","AtomTextRichtext","Chief Investment Officer","SG Value Partners AG",{"_uid":75,"text":76,"htmlTag":56,"fontSize":56,"component":57},"3f565b8f-f195-4b20-8d82-e03ac58850bc","Outlook, thoughts and issues",{"_uid":78,"html":79,"fontSize":70,"component":71},"c659058e-3ac8-44ae-b795-c02f02c4ad0d",{"type":61,"content":80},[81,88,92,96,100,104,108,112,116,133],{"type":82,"attrs":83,"content":85},"heading",{"level":84},5,[86],{"text":87,"type":68},"Sidestepping the nominal asset trap, part I",{"type":64,"content":89},[90],{"text":91,"type":68},"Unprecedented programs of money creation by the world’s major central banks have been in place starting with the US subprime crisis in 2007/8. One unintended effect, we believe, has been a somewhat confused picture among traders and investors about what constitutes those equity investments that represent enduring value and others that largely move up or down in price based on the hunches, moods and whims of the market. For simplicity, the former category we would call “real assets” and the latter “nominal assets.”",{"type":64,"content":93},[94],{"text":95,"type":68},"It should come as no surprise that, ideally, our aim is to have the fund’s portfolio positioned with a minimum in “nominal” assets and a maximum in “real” ones. We will begin with what types of equities we want to avoid for the fund, deferring the discussion of our preferred assets on the “real vs. nominal” scale separately to a future installment of this letter. ",{"type":64,"content":97},[98],{"text":99,"type":68},"First, it should be evident that we try to minimize cash holdings and money market instruments, whether in the form of “hard” or “soft” fiat currencies, as they render a negative yield given the current short-term interest rates available. Needlessly to say, we won’t even consider novel ways to hold liquidity such as virtual currencies; in our view, they also exhibit “nominal” rather than “real” qualities. Fortunately, we are in a comfortable position to hold a fully invested portfolio given the abundant and excellent opportunities available in inexpensive equities embodying “real asset” characteristics.",{"type":64,"content":101},[102],{"text":103,"type":68},"Second, we believe that equities treated with fixed-income characteristics by the market—the so-called “bond-proxies” (e.g., stable, steadily growing “blue-chip” consumer staple, health care and high-tech companies)—in general don’t provide good value at present as their future earnings streams are currently being discounted by the market at unduly low hurdle rates.",{"type":64,"content":105},[106],{"text":107,"type":68},"Third, we are very cautious towards firms with much of their implicit value tied up in goodwill in the form of acquisition premia, brand names and other hard-to-assess accounting items. Takeover premia, for their part, become ever more elevated given the cheap financing sources available. These “book values” will have to be amortized over time or eventually written down if they fail obligatory impairment tests at future measurement dates. As far as brand values are concerned, they are oftentimes overhyped by company managements and investment analysts alike. Hence, especially in times of abundant liquidity, they tend to become overpriced by the markets.",{"type":64,"content":109},[110],{"text":111,"type":68},"Fourth, with cheap money abound it has always been the case that too many firms with decidedly shallow long-term business cases have gone public, some featuring not much more than a catchy story or concept, taking advantage of trendy and fashionable yet unproven ideas built on shaky competitive foundations. In fact, the recent boom in special purpose acquisition companies (SPACs) goes yet a step further and symbolizes the point. Their sponsors are able to raise money upfront merely in the form of empty vehicles with the implicit promise to place the proceeds in a hopefully successful business venture afterwards. ",{"type":64,"content":113},[114],{"text":115,"type":68},"And fifth, we also detect pockets of unattractive valuations attributed to firms benefitting from excessively cheap terms for the consumer to finance them (e.g., residential real estate in popular locations, luxury goods and even art and collectibles). Here, by the way, we can see that the issue of “real” vs. “nominal” for us goes beyond favoring “tangibles” over “intangibles;” even hard assets can become significantly overvalued when monetary policies are heavily accommodative over extended periods of time.",{"type":64,"content":117},[118,120,125,127,131],{"text":119,"type":68},"We cannot ",{"text":121,"type":68,"marks":122},"predict ",[123],{"type":124},"italic",{"text":126,"type":68},"what consequences the prolonged ultra-loose monetary conditions will eventually have for the global economy. However, what we can do is to stay alert and ",{"text":128,"type":68,"marks":129},"prepare ",[130],{"type":124},{"text":132,"type":68},"for a future where again a fair and proper price will have to be paid for money that adequately reflects real, inflation-adjusted conditions.",{"type":64,"content":134},[135],{"text":136,"type":68},"Sincerely,","BlockLayoutSection","transparent","PageNews","quartalsbericht-3q2021","en/themen-gedanken/quartalsbericht-3q2021",-850,[],217756702998777,"2cbf537e-5ba9-423f-bd41-6a8c85d556b3",[],1791208903,[149],{"name":30,"created_at":31,"published_at":32,"updated_at":33,"id":34,"uuid":35,"content":150,"slug":39,"full_slug":40,"sort_by_date":24,"position":41,"tag_list":151,"is_startpage":28,"parent_id":43,"meta_data":24,"group_id":44,"first_published_at":45,"release_id":24,"lang":46,"path":24,"alternates":152,"default_full_slug":24,"translated_slugs":24},{"_uid":37,"name":30,"component":38},[],[],[],{"age":155,"cache-control":156,"connection":157,"content-encoding":158,"content-type":159,"date":160,"etag":161,"referrer-policy":162,"sb-be-version":163,"server":164,"transfer-encoding":165,"vary":166,"via":167,"x-amz-cf-id":168,"x-amz-cf-pop":169,"x-cache":170,"x-content-type-options":171,"x-frame-options":172,"x-permitted-cross-domain-policies":173,"x-request-id":174,"x-runtime":175,"x-xss-protection":176},"2265","max-age=0, public, s-maxage=604800, stale-if-error=3600","keep-alive","gzip","application/json; charset=utf-8","Mon, 05 Oct 2026 14:21:16 GMT","W/\"143cdb7e67e6e1f0b0e06b61fd1a5974\"","strict-origin-when-cross-origin","5.980.1","nginx/1.29.1","chunked","Origin,Accept-Encoding","1.1 717a0e7af2a3da4138a71f64ce4675d0.cloudfront.net (CloudFront)","Q8-t4PCKJvnOsdiJTmXvyQhAbCr9QwQq83a4EkIvGyFMLDLyGNrC_Q==","IAD55-P6","Hit from cloudfront","nosniff","SAMEORIGIN","none","4fb5bfd1-7cff-4eee-9388-f68588bb06bb","0.038159","0",{"data":178,"headers":443,"perPage":453,"total":454},{"stories":179,"cv":147,"rels":437,"links":442},[180,278,358],{"name":181,"created_at":182,"published_at":183,"updated_at":184,"id":185,"uuid":186,"content":187,"slug":272,"full_slug":273,"sort_by_date":24,"position":274,"tag_list":275,"is_startpage":28,"parent_id":144,"meta_data":24,"group_id":276,"first_published_at":183,"release_id":24,"lang":46,"path":24,"alternates":277,"default_full_slug":24,"translated_slugs":24},"Quartalsbericht 3Q2022","2026-09-08T13:55:35.699Z","2026-09-08T14:08:25.247Z","2026-09-08T14:08:25.261Z",217850411855450,"60219681-9375-4028-b582-b85bfe868261",{"seo":188,"_uid":193,"date":194,"image":195,"title":189,"category":199,"sections":203,"component":139,"description":19,"disablePrerender":28},{"_uid":14,"title":189,"plugin":16,"og_image":190,"og_title":189,"description":191,"twitter_image":190,"twitter_title":189,"og_description":192,"twitter_description":192},"Quarterly Report 3Q2022","https://a.storyblok.com/f/294930226098899/1200x627/7bd6851cf7/istock-1318734406_1200x627.png","Benjamin Graham first published The Intelligent Investor in 1949, serving as a practitioner’s handbook in sequence to the previously issued academic tome Security Analysis (1934). In it he proposed three areas in which the so-called “enterprising investor” may find profitable investment opportunities. ","Benjamin Graham first published The Intelligent Investor in 1949, serving as a practitioner’s handbook in sequence to the previously issued academic tome Security Analysis (1934). In it he proposed three areas in which the so-called “enterprising investor” may find profitable investment opportunities.","a7be5b08-de5e-4695-8c71-d078c1bf5b58","2022-10-14 00:00",{"id":196,"alt":19,"name":19,"focus":19,"title":19,"source":19,"filename":197,"copyright":19,"fieldtype":26,"meta_data":198,"is_external_url":28},217846526266218,"https://a.storyblok.com/f/294930226098899/1230x820/ad4806a9a5/istock-1318734406_1230x820.png",{},{"name":30,"created_at":31,"published_at":32,"updated_at":33,"id":34,"uuid":35,"content":200,"slug":39,"full_slug":40,"sort_by_date":24,"position":41,"tag_list":201,"is_startpage":28,"parent_id":43,"meta_data":24,"group_id":44,"first_published_at":45,"release_id":24,"lang":46,"path":24,"alternates":202,"default_full_slug":24,"translated_slugs":24,"_stopResolving":48},{"_uid":37,"name":30,"component":38},[],[],[204],{"_uid":205,"content":206,"component":137,"backgroundColor":138},"9312ba3f-6728-4a06-a659-7b2fdb7feecb",[207,209,217,219],{"_uid":208,"text":55,"htmlTag":56,"fontSize":56,"component":57},"42e1b508-cdb3-4f6f-a991-f39e4f61c5e4",{"_uid":210,"html":211,"author":69,"fontSize":70,"component":71,"authorRole":72,"authorCompany":73,"showAuthorAlsoOnBottom":48},"192d29b7-3f12-4046-bdfd-99d22ace66e4",{"type":61,"content":212},[213],{"type":64,"content":214},[215],{"text":216,"type":68},"The strategy continues to demonstrate its steadfastness in sharp contrast to the widespread indecisiveness evident in the global financial markets due to headline macroeconomic and geopolitical concerns. We believe that the investment philosophy laid out by our academic and professional role model Benjamin Graham, crafted during the Great Depression years of the 1930s, serves us particularly well in the current difficult investment environment.",{"_uid":218,"text":76,"htmlTag":56,"fontSize":56,"component":57},"134b116d-5e82-48a4-9f38-5f605e985833",{"_uid":220,"html":221,"fontSize":70,"component":71},"80a811e3-20a9-4773-873f-54514c4d1b69",{"type":61,"content":222},[223,231,253,257,261,265,269],{"type":82,"attrs":224,"content":225},{"level":84},[226],{"text":227,"type":68,"marks":228},"Analytical approaches for the enterprising investor",[229],{"type":230},"bold",{"type":64,"content":232},[233,235,239,241,245,247,251],{"text":234,"type":68},"Benjamin Graham first published ",{"text":236,"type":68,"marks":237},"The Intelligent Investor",[238],{"type":124},{"text":240,"type":68}," in 1949, serving as a practitioner’s handbook in sequence to the previously issued academic tome ",{"text":242,"type":68,"marks":243},"Security Analysis",[244],{"type":124},{"text":246,"type":68}," (1934). In it he proposed three areas in which the so-called “enterprising investor” may find profitable investment opportunities, namely (1) “the relatively unpopular large company,” (2) “bargain issues” and (3) “special situations.” We have always found these categories to be extraordinarily helpful in streamlining and sharpening our analytical thought process. Hence, we are accustomed to assign the particular investment situations we uncover to one of these three buckets, defining and filling them according to our particular ",{"text":248,"type":68,"marks":249},"modus operandi",[250],{"type":124},{"text":252,"type":68},".",{"type":64,"content":254},[255],{"text":256,"type":68},"The first bucket we call “compounders.” Historically they have made up around a quarter to a third of the Fund’s portfolio. The category includes fairly well-known firms that have fallen out of favor in the stock market, mainly for the following reasons: [1] their revenue growth rates may have been decelerating because of signs of market saturation; [2] their corporate focal point may have shifted from high rates of reinvestment to cash flow maximization and higher dividend payouts; [3] they may have experienced company-specific strategic or operating mishaps which have led to temporary earnings setbacks; [4] and/or they may have been afflicted by externally caused macroeconomic and geopolitical crises or force majeure events such as natural disasters.",{"type":64,"content":258},[259],{"text":260,"type":68},"The second bucket, bargain issues, has always comprised the bulk of overall portfolio allocation with well over half the capital invested. It encompasses four main areas of impediment which have rendered the stocks in question trading significantly below our objective assessment of intrinsic value. [1] They may be neglected or ignored by the market because they are not well known due to their size (e.g., of small or medium market capitalization) or position in the supply chain (e.g., the production of intermediate goods) or because they have a subdued earnings profile due to modest revenue growth and/or profit margins. [2] Investors at times may be concerned or even fearful about their prospects, oftentimes due to impending signs of a broad-based cyclical downturn or industry-specific reasons such as temporary production overcapacities. [3] They may be too complex or unwieldy to analyze for most market participants (e.g., conglomerates, holding companies or otherwise widely diversified businesses).  [4] It may be difficult to access management and exert influence as a minority shareholder (e.g., in the case of companies without a need to tap outside financing sources, thereby lacking the incentive to engage in investor relations and volunteer additional information that goes above and beyond that required by regulatory reporting requirements).",{"type":64,"content":262},[263],{"text":264,"type":68},"The third bucket, special situations, usually contributes the remaining and smallest share to the portfolio. It primarily includes [1] asset plays such as discounts to readily assessable market value (such as net cash or other liquid assets and long-term holdings such as prized land and natural resources which are accounted for using historical book values); and [2] other particularities such as substantial exchange-listed or stand-alone unlisted subsidiaries, cross-shareholdings, joint ventures or companies involved in M&A and other corporate finance transactions.",{"type":64,"content":266},[267],{"text":268,"type":68},"The above discussion on the analytical approaches for resourceful investors proposed by Ben Graham and the way we incorporate them in our daily work illustrates how deeply his philosophy permeates our investment style. Graham was an inspiration to us on many fronts, one of the most important being his mental fortitude that allowed him to remain industrious and constructive to find profitable investment opportunities with calculated risk even in the face of great stress in the financial markets. We are grateful to have been able to draw on his wisdom to continuously refine and improve our own investment endeavors.",{"type":64,"content":270},[271],{"text":136,"type":68},"quartalsbericht-3q2022","en/themen-gedanken/quartalsbericht-3q2022",-870,[],"df935476-38b3-4198-83f4-9ea0fbc1450a",[],{"name":279,"created_at":280,"published_at":281,"updated_at":282,"id":283,"uuid":284,"content":285,"slug":352,"full_slug":353,"sort_by_date":24,"position":354,"tag_list":355,"is_startpage":28,"parent_id":144,"meta_data":24,"group_id":356,"first_published_at":281,"release_id":24,"lang":46,"path":24,"alternates":357,"default_full_slug":24,"translated_slugs":24},"Quartalsbericht 2Q2022","2026-09-08T13:55:33.226Z","2026-09-08T14:08:20.512Z","2026-09-08T14:08:20.528Z",217850401730123,"a196fc9b-2e15-4468-a06f-77d0c71baa13",{"seo":286,"_uid":290,"date":291,"image":292,"title":287,"category":296,"sections":300,"component":139,"description":19,"disablePrerender":28},{"_uid":14,"title":287,"plugin":16,"og_image":288,"og_title":287,"description":289,"twitter_image":288,"twitter_title":287,"og_description":289,"twitter_description":289},"Quarterly Report 2Q2022","https://a.storyblok.com/f/294930226098899/1200x627/e325133d70/bild_1q22_1200x627.jpg","Asset prices in the financial markets are driven by expectations about the future. When prospects look bright, they rise and when they darken, they fall. Every trading day anew, commentators try to rationalize the incremental changes in expectations. Much less contemplated in fundamental terms—though ultimately more consequential for earnest savers—is the level of expectations. ","7352dd50-a630-4d8d-b298-9f4838c1c8ce","2022-07-11 00:00",{"id":293,"alt":19,"name":19,"focus":24,"title":19,"source":19,"filename":294,"copyright":19,"fieldtype":26,"meta_data":295,"is_external_url":28},217846440385369,"https://a.storyblok.com/f/294930226098899/1230x820/5bc17588d8/istock-863587590_1230x820.png",{},{"name":30,"created_at":31,"published_at":32,"updated_at":33,"id":34,"uuid":35,"content":297,"slug":39,"full_slug":40,"sort_by_date":24,"position":41,"tag_list":298,"is_startpage":28,"parent_id":43,"meta_data":24,"group_id":44,"first_published_at":45,"release_id":24,"lang":46,"path":24,"alternates":299,"default_full_slug":24,"translated_slugs":24,"_stopResolving":48},{"_uid":37,"name":30,"component":38},[],[],[301],{"_uid":302,"content":303,"component":137,"backgroundColor":138},"7f3f72b7-8910-45e1-8730-36a0ba84b36e",[304,306,314,316],{"_uid":305,"text":55,"htmlTag":56,"fontSize":56,"component":57},"3d07f5a7-c100-4dab-bae0-b43fcc54c085",{"_uid":307,"html":308,"author":69,"fontSize":70,"component":71,"authorRole":72,"authorCompany":73,"showAuthorAlsoOnBottom":48},"b8d108f8-085f-4c49-b5e9-610d8d275137",{"type":61,"content":309},[310],{"type":64,"content":311},[312],{"text":313,"type":68},"On the back of higher benchmark interest rates and, consequently, rising cost of capital, the recent reporting period in the financial markets has brought about an attitudinal shift away from speculation towards valuation. Seemingly outdated concepts such as normalization and reversion-to-the-mean have at last reappeared after being ignored during the many years of easy monetary policies pursued by the leading central banks.",{"_uid":315,"text":76,"htmlTag":56,"fontSize":56,"component":57},"4a976ddb-0132-433e-a59b-fc2a21cbdc4b",{"_uid":317,"html":318,"fontSize":70,"component":71},"95e21868-ed90-4da4-89be-87a84c23a776",{"type":61,"content":319},[320,325,329,333,337,341,345,349],{"type":82,"attrs":321,"content":322},{"level":84},[323],{"text":324,"type":68},"Expectations-reset in the markets suits our approach",{"type":64,"content":326},[327],{"text":328,"type":68},"Asset prices in the financial markets are driven by expectations about the future. When prospects look bright, they rise and when they darken, they fall. Every trading day anew, commentators try to rationalize the incremental changes in expectations. Much less contemplated in fundamental terms—though ultimately more consequential for earnest savers—is the level of expectations. The latter is precisely what we care about in our daily work. The central topic of interest to us revolves around the question whether expectations about a potential investment at any given point in time are (too) high, about right or (too) low. In simple terms, we buy when expectations are depressed and sell when they look good. ",{"type":64,"content":330},[331],{"text":332,"type":68},"This stance bears its fruits over time and becomes especially visible in the current market environment. The fundholders know that for many years now our basic premise has been that implied discount rates tend to be (too) low and profit margins (too) high for index-heavy and otherwise broadly owned or trendy companies. There now seems to occur an adjustment in market behavior towards our thinking. Applying a crude measure of expectations such as the price-to-sales ratio, we have witnessed a disproportionate decline in the companies sporting the loftiest multiples, whereas low price-to-sales portfolios such as ours have shown to be rather stable.",{"type":64,"content":334},[335],{"text":336,"type":68},"As a reminder, the fair value of equity equals all future net cash flow streams accruing to the shareholders of a corporation discounted to the present. As deep value investors we seek out bargain prices in out-of-favor companies. Usually, such opportunities arise due to a poor growth and/or cash generation profile as well as a relatively high implied cost of capital.",{"type":64,"content":338},[339],{"text":340,"type":68},"First, as far as revenue projections are concerned, our firms are regularly neglected or avoided by the market due to their unexciting cyclical, diversified or “old-economy” characteristics. Second, in terms of cash generation and profit margins, many of our companies can be bought at a steep discount due to strategy, structure or operational challenges (for example: unrelated business divisions/lack of interdivisional synergies; small or family-owned businesses lacking economies of scale or geographic spread; complex construction work causing lumpy and often mismatched revenue and expense recognition; inefficient capital allocation; cost-mismanagement; etc.). And third, the fixed-asset heavy nature of most of our holdings causes the market to demand relatively high hurdles with respect to the required return on capital. Hence, in our valuation work we conservatively assume much higher real discount rates in comparison to the ones the market has used to justify the prices of those highly sought-after, so-called “capital-light” assets during the post-Lehman low-rate environment.",{"type":64,"content":342},[343],{"text":344,"type":68},"For these reasons, the positioning of the Fund portfolio has essentially been “ahead of the curve” all along: subdued growth and high discount rates are constant realities confronting deep value investors, whereas the market has only now come to grapple with the idea that the global economy may be faced with headwinds such as lower growth, higher expenses and pricier money. In short, we are already constructively positioned to be able to take advantage of the normalization process that currently plays out in global stock markets.",{"type":64,"content":346},[347],{"text":348,"type":68},"Whether the recent downward move in the popular equity indices is enough to reflect a more realistic level of expectations lies beyond our circle of competence and we will gladly leave that judgment call up to the market seers out there. What we are convinced about, however, is that the implied level of expectations afforded to the Fund’s aggregate portfolio is decidedly modest. The economic pressure to gradually push those low expectations up to a fairer level promises good things to come over time with respect to the achievable future compound rate of return.",{"type":64,"content":350},[351],{"text":136,"type":68},"quartalsbericht-2q2022","en/themen-gedanken/quartalsbericht-2q2022",-790,[],"b6b8ac4e-21c4-47be-81e7-54e34c93cb14",[],{"name":359,"created_at":360,"published_at":361,"updated_at":362,"id":363,"uuid":364,"content":365,"slug":431,"full_slug":432,"sort_by_date":24,"position":433,"tag_list":434,"is_startpage":28,"parent_id":144,"meta_data":24,"group_id":435,"first_published_at":361,"release_id":24,"lang":46,"path":24,"alternates":436,"default_full_slug":24,"translated_slugs":24},"Quartalsbericht 1Q2022","2026-09-08T13:55:28.364Z","2026-09-08T14:08:15.307Z","2026-09-08T14:08:15.321Z",217850381815341,"e8d58828-e517-41d1-b8e9-2d55cf47766c",{"seo":366,"_uid":369,"date":370,"image":371,"title":367,"category":375,"sections":379,"component":139,"description":19,"disablePrerender":28},{"_uid":14,"title":367,"plugin":16,"og_image":288,"og_title":367,"description":368,"twitter_image":288,"twitter_title":367,"og_description":368,"twitter_description":368},"Quarterly Report 1Q2022","How to diversify is a multi-faceted topic that may mean entirely different things to different people. We think of it as pairing art with science.","e33a23f8-8091-4494-8dfb-61ce0c504f0e","2022-04-20 00:00",{"id":372,"alt":19,"name":19,"focus":24,"title":19,"source":19,"filename":373,"copyright":19,"fieldtype":26,"meta_data":374,"is_external_url":28},217846407093078,"https://a.storyblok.com/f/294930226098899/1230x820/2498926763/bild_1q22_1230x820.jpg",{},{"name":30,"created_at":31,"published_at":32,"updated_at":33,"id":34,"uuid":35,"content":376,"slug":39,"full_slug":40,"sort_by_date":24,"position":41,"tag_list":377,"is_startpage":28,"parent_id":43,"meta_data":24,"group_id":44,"first_published_at":45,"release_id":24,"lang":46,"path":24,"alternates":378,"default_full_slug":24,"translated_slugs":24,"_stopResolving":48},{"_uid":37,"name":30,"component":38},[],[],[380],{"_uid":381,"content":382,"component":137,"backgroundColor":138},"af7b3919-a8c3-4842-bb23-ed7bf1fd586e",[383,385,393,395],{"_uid":384,"text":55,"htmlTag":56,"fontSize":56,"component":57},"114b7eb5-a9ba-49f9-aeab-98d6534abe4d",{"_uid":386,"html":387,"author":69,"fontSize":70,"component":71,"authorRole":72,"authorCompany":73,"showAuthorAlsoOnBottom":48},"904bf0eb-8c52-40e4-a031-2409705d7aa8",{"type":61,"content":388},[389],{"type":64,"content":390},[391],{"text":392,"type":68},"Given the ever-present danger of adversity caused by natural catastrophes and manmade disasters, utmost importance in an earnest investment program must be afforded to the structural integrity of the aggregate portfolio which protects the long-term compounding effect for the committed saver. Over time the Fund has demonstrated aptitude in weathering the sporadic violent downdrafts in parts of the portfolio, keeping intact the solid trajectory in its historical track record. In the segment below we would like to share with the reader some of the reasons behind this resilience.",{"_uid":394,"text":76,"htmlTag":56,"fontSize":56,"component":57},"123d9848-9c5e-4126-a63b-e78a58aedff3",{"_uid":396,"html":397,"fontSize":70,"component":71},"3076f7c3-5414-4721-b4fd-4e60c257b906",{"type":61,"content":398},[399,404,408,412,416,420,424,428],{"type":82,"attrs":400,"content":401},{"level":84},[402],{"text":403,"type":68},"The double benefit of bottom-up, value-based diversification",{"type":64,"content":405},[406],{"text":407,"type":68},"How to diversify is a multi-faceted topic that may mean entirely different things to different people. We think of it as pairing art with science. For us, putting a portfolio together is not unlike a designer creating a mosaic while heeding the statistical insights from Harry Markowitz’s famed modern portfolio theory (MPT). In other words, crafting an expressive mosaic [i.e., equity portfolio] calls for rigor in assembling the overall composition but concurrently drawing on eclecticism and creative nous when it comes to the selection of the individual pieces.",{"type":64,"content":409},[410],{"text":411,"type":68},"On the portfolio level, the foremost principle we adhere to is an impartial approach to portfolio construction. Each of our companies deserves as much importance within the Fund as do the others. First, this means that we don’t allocate money in proportion to market capitalization. Such a practice, usually applied to indexed and benchmarked funds, bears the danger of overinvesting in recent winners while underappreciating recent laggards. For example, funds weighted according to market cap had a big allocation to financial stocks just as the financial crisis of 2007/8 struck, something which we were able to avoid. By the same token, our investors would not have been able to participate as much from the strong performance contribution of our broad Japanese equity exposure over the last ten years. Back then, those stocks were utterly neglected by global asset allocators, with the Topix and Nikkei Indices languishing near multi-decade lows. ",{"type":64,"content":413},[414],{"text":415,"type":68},"Second, we run an equitable portfolio structure maintaining roughly equal weights in modestly sized individual positions. Practically speaking, we usually establish a new investment in a range of 1% to 1.5% of total assets. If it subsequently rises in price, we may trim it back to a “normal” allocation. And if it falls, we buy more of it, thereby reducing the average entry price. This practice ensures that the margin of safety and diversification profile of the aggregate portfolio is being replenished at all times, even if there are no new additions or disposals of entire securities.",{"type":64,"content":417},[418],{"text":419,"type":68},"As far as the selection of the individual pieces making up the mosaic [i.e., equity portfolio] are concerned, we strive to unearth highly unique and complementary ideas which are as compelling on their own as in combination with the others. We are meticulous about avoiding redundancy in stock selection, a common deficiency encountered in conventional fund management. The variety of asset characteristics ensures that we don’t overemphasize exposure to certain areas that exhibit the same price swings in the market, even though the Fund takes advantage of so-called “pockets of value” in holdings with similar descriptive traits (see past quarterly commentaries for more details).",{"type":64,"content":421},[422],{"text":423,"type":68},"A classic Graham & Dodd approach lets the statistical properties of a well-diversified aggregate portfolio work its magic. The beauty of this methodology is that we can assemble a portfolio with a high degree of upward revaluation capacity without having to incur undue concentration risk.",{"type":64,"content":425},[426],{"text":427,"type":68},"The portfolio management techniques described above capture the key purpose of MPT, namely that we make low correlation our companion in the endeavor to maximize potential return for a given level of risk. On top of that, our highly differentiated offering causes the Fund to exhibit low correlation vis-à-vis to other investment products as well, be they passively or actively managed. Thus, our fundholders get the double benefit from low correlation (1) within our Fund and (2) in the context of their overall investment program.",{"type":64,"content":429},[430],{"text":136,"type":68},"quartalsbericht-1q2022","en/themen-gedanken/quartalsbericht-1q2022",-630,[],"5c0e6e74-ca06-4a80-a24b-6b6aa03274e2",[],[438],{"name":30,"created_at":31,"published_at":32,"updated_at":33,"id":34,"uuid":35,"content":439,"slug":39,"full_slug":40,"sort_by_date":24,"position":41,"tag_list":440,"is_startpage":28,"parent_id":43,"meta_data":24,"group_id":44,"first_published_at":45,"release_id":24,"lang":46,"path":24,"alternates":441,"default_full_slug":24,"translated_slugs":24},{"_uid":37,"name":30,"component":38},[],[],[],{"age":444,"cache-control":156,"connection":157,"content-encoding":158,"content-type":159,"date":445,"etag":446,"per-page":447,"referrer-policy":162,"sb-be-version":163,"server":164,"total":448,"transfer-encoding":165,"vary":166,"via":449,"x-amz-cf-id":450,"x-amz-cf-pop":169,"x-cache":170,"x-content-type-options":171,"x-frame-options":172,"x-permitted-cross-domain-policies":173,"x-request-id":451,"x-runtime":452,"x-xss-protection":176},"2786","Mon, 05 Oct 2026 14:12:35 GMT","W/\"52801326cc1f5741cf7de46fdcf128c1\"","3","13","1.1 46a0017ecef439253017ac2cc1624646.cloudfront.net (CloudFront)","yJELbGzoBV8dktu-BAu07SG4Y9SIzaGZvxHWRYRp5RLbwsj6SwZOEw==","7ad3c7ad-7afc-40fa-a293-343f50d6f15f","0.052176",3,13,1791212340890]