Performance1

The portfolio selection is focused on shares in EU, US and Emerging Markets but allows also for an element of currencies and commodities. As a rough benchmark the MDAX is used. Mispricing by the market and short-term trading opportunities are the main focus Strategy The aim is to generate a stable yearly return of 10-20% benefiting from chances such as -the market mispricing stocks due to sudden volume peaks or the lack of such, 'investors' exaggerating their excitement when buying or selling shares but also -looking for shares that have been out-of-favour for the wrong reasons, i.e. wrong sector, low liquidity, anti-cyclical, too high valuation at first glance but a reasonable one once a more detailed look has been taken. Fundamentally a selected company needs to meet at least the following requirements: - Reasonable P/BV - Solid balance sheet (low leverage (if any), cash reserves) - established business-model - positive net income over the last two years Some of these attributes can be neglected in case of a short-term trading opportunity or developing M&A events. Risks The portfolio is for speculative investors, i.e. there is a risk of a total loss of the money invested. Liquidity of selected stocks can be low too allowing only a slow exit. Positions generating a loss >25% will be cut. Sources Information is mainly gained from companies' balance sheets, news flow from selected brokers, bloomberg, and financial news sites. Holding period Stocks are usually held between 2 days and 3 months depending on the reason why they have been bought. Currencies can be traded intraday.