ESB Capital Pegasus Value Fund

The Pegasus Value Fund pursues an active equity strategy based on classical and modern value investing concepts, aiming to achieve long-term above-average returns through targeted company analysis. The focus lies on identifying high-quality companies that are trading below their intrinsic value. The investment philosophy follows the principles of Benjamin Graham and Warren Buffett: investing in understandable business models with stable earnings, sustainable competitive advantages, and capable management — when available at a fair or undervalued price. Investment Universe: The fund invests in equities of international companies from developed markets (USA, Europe) across various industries. ETFs and mutual funds are used only as a complement. The portfolio typically consists of 10 to 20 individual positions, ensuring a concentrated yet diversified structure. Selection Criteria: - Companies with strong cash flow, healthy balance sheets, and low debt levels - Valuation below estimated intrinsic value (e.g. P/E, EV/EBIT, P/B, P/FCF) - Long-term growth potential despite short-term market fluctuations - Qualitative factors such as management quality, market position, and capital allocation efficiency - Exclusion of companies with non-transparent or speculative business models Investment Horizon: The average holding period ranges between 6 months and 3 years. Portfolio adjustments are made only in response to significant valuation changes or strategic shifts. Short-term market volatility is consciously accepted.