Holdings selection and management of our equity portfolio
PRE-SELECTION IN THE INVESTMENT UNIVERSE
Within an investment universe of over 40,000 companies, we quantitatively evaluate shares of companies worldwide, initially using a few preset selection criteria such as minimum market capitalization, risk profile, regions and sustainability parameters.
BALANCE SHEET ANALYSIS AND DETAILED QUANTITATIVE SELECTION
After the preselection, the investment universe condenses to around 1,500 companies. Another proprietary quantitative evaluation with scoring is now carried out on the basis of the five factors profitability, stability, growth, sustainability and market valuation.
Each factor is supplemented by sub-factors. For example, sub-factors such as gross income, operating profitability, equity and total capital as well as cash flow are taken into account for the profitability analysis. Sub-factors such as operating income, profit and assets are also relevant for the assessment of company growth.
With our analysis and the resulting data aggregation as well as the percentile placements, we basically want to get three questions answered: How good (profitability, stability, growth), how sustainable and how expensive is a company?
INVESTMENT UNIVERSE FROM ELITE COMPANIES
The detailed quantitative selection creates an investment universe of around 200 companies worldwide, from which the final selection of the individual companies for our equity portfolio is fed. Here, topics such as the future viability of a business model, growth dynamics, management quality and key financial figures come to the fore. But also disruptive business models receive special attention in this step.
A broadly diversified equity portfolio is created from the previous steps, which combines around 40 established and dynamic elite companies - the "DARWIN Portfolio".
While the established ones are already generating strong, predictable cash returns, the potential for higher growth among the dynamic ones lies in disruptive new business models. This robust combination brings together the resilience and adaptability of these companies. Properties that are decisive in order to successfully survive different market phases.
The management of sectors and regions as well as the ongoing review and adjustment of all portfolio positions ensure that our equity portfolio continues to develop over time.