EAP_SS22_HTLP Global Fund

We act as active investors who focus on big and medium-sized companies. The portfolio will hold a maximum cash of 5% and will be diversified internationally and in various industries. The largest portion of our portfolio will be invested in equities. Furthermore, we include ETFs in our holdings. Our geographical allocation concentrates mainly on the U.S., Europe and partly on Asia and emerging markets. In order to be evaluated in 3 months we cannot take significant long-term positions and therefore have to adapt our strategy. We use fundamental analysis methods in order to ensure a good quality and integrity of our investment decisions. Our investment strategy follows 3 predetermined steps: In a first assessment, we compare the P/E ratio and the P/B ratio to the industry standard in order to identify potentially undervalued companies. Secondly, we use those ratios and the expected future growth to calculate the fair value of the stock. If the fair value is higher than the market value, the stocks has to pass our final qualitative analysis. We research if our considered security is exposed to any political, exchange rate, and individual country risks by carefully following the relevant news and any press releases from the respective companies. Regarding ETFs we consider the following factors: First of all the ETF needs to have >€ 250m in net assets and must be issued by an established investment firm to reduce the liquidation risk. Second, we pay attention to the industry weighting, so we do not exceed our self-defined maximum sector/industry proportions. Third, we take a closer look at the largest positions and therefore rule out the possibility of having stocks with a critical total weight. We can be categorized as having a moderate to high-risk exposure. Our investment strategy was created to cope with the current challenges the world is facing, for instance the COVID-19 economic recovery, the Russian-Ukraine-conflict and general rising political tensions.