EAP_SS20_Vaduz Capital

The aim of Vaduz Capital is to reduce the risks during uncertain times investing in safer securities and over long-term, to generate high returns focusing on the markets, industries and individual companies with big potential for growth in the future. In order to reduce the exposure of the portfolio to single industries and asset classes, especially in the times of uncertainty, we aim to achieve diversification effect through allocation across different asset classes as well as different markets. Our investment universe includes developed and emerging markets securities. We maintain the target asset mix by constant portfolio re-balancing responding to the changes in the market. We structure our portfolio using a combination of academic theory and market judgment. We employ mean-variance analysis to estimate expected risk and return of various asset allocation alternatives and to test sensitivity of results. Historical data together with qualitative analysis based on updated news play an important role in our portfolio decisions and allows to identify anomalous periods and structural changes. For our portfolio decisions we monitor latest news influencing the market, as well as historical data from financial data providers such as Bloomberg, Yahoo Finance, etc.