Our Investment Concept
European Small and Mid Caps
At the core of the investment strategy are investments in European equities. We invest primarily in European Small & Mid Caps. The high level of information inefficiencies still evident in the European Small & Mid Cap segment, which we have been following for many years, serves as the ideal basis for high alpha generation.
In contrast to large corporations, SME companies act more on the long-term, are more innovative and usually operate in very profitable niches. Board members and managing directors are often stakeholders in the company and therefore act with care and foresight.
From a capital market point of view this leads to significantly higher potential returns for Small & Mid Caps compared to Blue Chips. European Small & Mid Caps are an inefficient market segment, that is, many securities are "under the radar" of large asset managers and banks. We take advantage of this market inefficiency. By meeting more than 300 managers of listed European Small & Mid Caps annually we benefit from that information edge at an early stage (alpha generation). This benefits our investors.
ESG Investing
With our investments in small- and medium-sized companies, we aim to support the achievement of the UN Sustainable Development Goals (SDGs). For this purpose, the business models of the companies are analyzed according to environmental, social and governance criteria ("ESG"). As a "value investor", Peacock Capital has always taken a critical stance towards companies that do not take transparent, honest and shareholder-friendly corporate governance very seriously.
ESG Guidelines (Kopie)
July 2021 | 150.3 KiB
Lack of social responsibility and severe environmental violations are equally unacceptable. Our focus is on companies that stand out for their above-average ESG compliance. We specifically look for ESG "pure plays", i.e. companies whose business model or products can only be classified as "purely sustainable" (e.g. renewable energies, producers of sustainable raw materials or alternative fuels, etc.).
Peacock Capital GmbH is a tied agent of BN & Partners Capital AG according to section 3 para. 2 WpIG. The mandatory disclosures according to the EU Disclosure Regulation of BN & Partners Capital AG as investment firm/financial advisor can be found here.
Value Investing
Value investing" is our guiding principle in selecting promising investment ideas. Value strategies with a focus on cheap valuation and cash flow growth are the most successful criterias in the long-term. Our investment philosophy is based on the principles of Benjamin Graham, the founder of fundamental security analysis, i.e. "Value Investing".
The use of proprietary valuation models to calculate own fair values for securities plays a major role. Static valuation ratios often fall short in assessing the attractiveness of an asset. Stocks are often categorised as "value" or "growth" on this basis but this is not the essence of a true value-based approach. "Value" and "growth" are actually two sides of the same coin. Growth assumptions just need to be realistic and predictable.
In focusing primarily on significantly mispriced securities, we stay focused on what is important. Most of the information flooding the capital market – especially that of a macroeconomic nature – is merely "noise". We exclusively focus on a thorough security analysis.
Long-term, entrepreneurial investment concept
We see ourselves as investors taking an entrepreneurial approach focused on the long-term. This is evidenced not least in our focus on family- and owner-run businesses. Sustainable and forward-looking management is at the very heart of our investment approach. That is why we never use trading strategies.
Valuations of mispriced securities do not immediately revert to the fair value. And companies may take time to actually implement their promising strategy. A careful analysis of the business model and a company's "intrinsic value" make it easier to be patient and to hold on to an investment.
Your advantage: Our portfolio turnover is significantly lower than that of most fund managers, which in turn has a positive effect on mandate costs.