Our Investment strategy
Performance Consistency
with limited volatility
Performance consistency over time. Our aim is to increase clients’ net worth with limited volatility. We praise ourselves in avoiding big market swings. Unlike the majority of asset managers, we have navigated the year 2022 with flattish performances. Subsequently, portfolios performed strongly in 2023 and 2024
Recurring Positive Cash Flow
Due to their professional past experiences, Qaerus’ managers have a fixed-income mindset. So, cash flow maximisation is always present in the portfolio design. The income stream comes from three main sources. First, the typical bond portfolio. Second, a basket of relatively safe structured products with equities as underlyings. Last, but not least, the sale of put options when volatility increases.
Opportunistic bias
At Qaerus Finance, we always want to capitalize on market opportunities/dislocations. If research is anything to go by, there are usually two 5% corrections per year and one 10% fall every 18 months. These declines are associated with spikes in the volatility index (VIX). At Qaerus, we use these episodes of market stress to sell puts in order to enhance performances.
In addition, we explore bond opportunities by conducting credit analysis. As an example, the recent Signa scandal that translated in heavy losses for Julius Baer bank provided the opportunity to invest in subordinated debt of the group at a very attractive discount and yield to call. The position was divested after 20 months with a gain of 21% in CHF.
High liquidity
We do not favour illiquid instruments (private equity, venture capital funds and others). On the contrary, we prefer to invest in conventional/traditional assets with high liquidity. In case of an emergency, a third of every portfolio can be liquidated in 48 hours.