Our investment approach is focused on growing wealth long-term and generating sustainable returns. An attractive risk reward ratio is a prerequisite for every investment decision. Spinoza Capital pursues an anti-cyclical investment approach.
In times of high valuations of equity markets, Spinoza Capital reduces its equity allocation and positions itself more defensively by reducing risk. In times of low valuations with attractive long-term opportunities, Spinoza Capital increases its equity allocation and takes a more dynamic approach. For this purpose, Spinoza Capital is continuously monitoring and evaluating key macroeconomic factors.
To achieve attractive returns, certain price fluctuations must be accepted
The key to success is to understand the risks precisely, rather than trying to avoid them altogether. Price fluctuations even offer considerable opportunities to the smart investor.
In times of low prices, the smart investor can increase his exposure, thus benefiting from lower entry prices. Conversely, in times of high valuations the smart investor uses the optimism of the market to reduce his exposure and to realise profits. Patience and deliberate action are decisive success factors.
The selection of investments is based on a thorough, fundamental analysis of the respective countries, currencies, sectors, and companies.
On the equity side, Spinoza Capital invests primarily in companies with strong market positions and compelling business models. Stocks are evaluated based on fundamental, quantitative criteria and selected after careful analysis and review. Spinoza Capital focuses on the following three criteria in particular: growth, quality and valuation.
Preference is given to companies with a strong balance sheet and low debt. For a positive investment decision, it is crucial that the current share price represents a sufficiently large discount to the expected value of the company in three to five years.