We using the Morningstar Global Equity Classification structure, a unified system that is applicable to stocks, funds and portfolios. Basically we are invested in several sectors, but we do not slavishly follow a fixed weighting ratio. Weighting takes place where opportunities arise at a specific point in time. Therefore, our sector weighting is an output and not an input of the process. Due to this sector neutral approach, we focus on attractive investment opportunities for fairly or undervalued companies. At the same time, we accepting a temporary overweighting in individual sectors 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 reduction. 

Last updated:  02/08/2019