We using the MSCI Global Industry Classification Standard (GICS) to analyze sector and industry contributions and portfolio performance. Basically we are invested in several industries, but we do not slavishly follow a fixed weighting ratio. Weighting takes place where opportunities arise at a specific point in time. Therefore, we see it as output and not as input of the process. Due to this neutral approach, we focus on special investment opportunities where we found a great business. At the same time, we accepting a temporary overweighting in individual industries as the economic cycle proceeding.
When constructing our portfolio, we take care to concentrate a manageable group of companies in a limited range of industries, which we as investors actually understand. Nonetheless, portfolio diversification is also important from the point of view of market capitalization and investment style. In this context, we consider risk management.
Last updated: 30/09/2019