NEWS

Better than the benchmark – 42% increase in value over the last 5 years!

April 21, 2020 | Digital Asset Management

Just 6 out of 51 asset managers succeeded in convincing with an above-average performance in the Benchmark Test III of the Fuchsbriefe publishing house. The portfolio managers of our parent company Früh & Partner can count themselves among the big winners. Estably uses the same analyses and investment ideas and now also offers them for smaller portfolios.

All about the Fuchsbriefe Benchmark Test

During the test, the active asset managers competed against a passive benchmark portfolio consisting of 2 ETFs with an equity exposure of 40%. Fictitiously, EUR 5 million were invested in a portfolio with the additional requirement of distributing 2% income annually from dividend payments and interest. Under these targets, the portfolio managers of Früh & Partner have succeeded in increasing the original EUR 5 million to EUR 7.11 million over the period 2014-2019, which corresponds to a value increase of 42.23% and an average annual return of 7.28%. This performance was achieved with a maximum equity exposure of 50%. Over the same period and under the same conditions, the benchmark portfolio “only” achieved a value increase of 24.51% – corresponding to an annual return of 4.47%.

Just 6 out of 51 asset managers succeeded in convincing with an above-average performance in the Benchmark Test III of the Fuchsbriefe publishing house. The portfolio managers of our parent company Früh & Partner can count themselves among the big winners. Estably uses the same analyses and investment ideas and now also offers them for smaller portfolios.

All about the Fuchsbriefe Benchmark Test

During the test, the active asset managers competed against a passive benchmark portfolio consisting of 2 ETFs with an equity exposure of 40%. Fictitiously, EUR 5 million were invested in a portfolio with the additional requirement of distributing 2% income annually from dividend payments and interest. Under these targets, the portfolio managers of Früh & Partner have succeeded in increasing the original EUR 5 million to EUR 7.11 million over the period 2014-2019, which corresponds to a value increase of 42.23% and an average annual return of 7.28%. This performance was achieved with a maximum equity exposure of 50%. Over the same period and under the same conditions, the benchmark portfolio “only” achieved a value increase of 24.51% – corresponding to an annual return of 4.47%.

benchmark vs frueh & partner

Who really masters asset management?

In addition to return on investment, the testers also focused on other criteria, which all contribute to a positive investment experience:

  • Sortina Ratio: measures the fluctuations of the portfolio on a daily basis and reflects the “stress” of the investor.
  • Omega: looks at the interaction between return and risk.
  • Focus on client needs: how exactly were the test specifications met?

Früh & Partner was one of only two firms to achieve “Better than the benchmark” both in terms of points (return, risk, performance) and performance. As an asset manager, it is important to focus on the fundamental data of companies and not to act or speculate emotionally. Most private investors and also many other asset managers fail in this regard. Those who rely on the quality of a company are rewarded in the long run. However, this requires a lot of knowledge and discipline.

Outperformance using the Value Investing strategy

For many years we have been relying on the proven value investing strategy. The focus here is on the careful selection of companies – both in the equity and bond sectors. Potential companies are usually analysed down to the smallest detail over a period of months. If we come to the conclusion that the company is being traded more favourably on the stock exchange than it is actually worth, we strike. This is the same strategy used by Warren Buffett and many of the world’s most successful investors to outperform. You can learn all about our value investing strategy here.

Conclusion

The result of the benchmark test confirms once again how important the choice of investment philosophy is for investment success. Paired with a good asset manager, you can then beat the benchmark by a wide margin.

Better than the Benchmark

Estably is the first Liechtenstein-based digital asset management firm to offer world-class asset management through a blend of technology and human investment expertise. Thanks to the portfolio managers’ many years of experience in the field of value investing, the aim is to achieve above-average returns – starting at an investment sum of € 35,000. The aim is to make professional asset management, which was previously possible exclusively for major investors, accessible to everyone – in a convenient, transparent and profitable way. Everything about our service can be found in our whitepaper.

Who really masters asset management?

In addition to return on investment, the testers also focused on other criteria, which all contribute to a positive investment experience:

  • Sortina Ratio: measures the fluctuations of the portfolio on a daily basis and reflects the “stress” of the investor.
  • Omega: looks at the interaction between return and risk.
  • Focus on client needs: how exactly were the test specifications met?

Früh & Partner was one of only two firms to achieve “Better than the benchmark” both in terms of points (return, risk, performance) and performance. As an asset manager, it is important to focus on the fundamental data of companies and not to act or speculate emotionally. Most private investors and also many other asset managers fail in this regard. Those who rely on the quality of a company are rewarded in the long run. However, this requires a lot of knowledge and discipline.

Outperformance using the Value Investing strategy

For many years we have been relying on the proven value investing strategy. The focus here is on the careful selection of companies – both in the equity and bond sectors. Potential companies are usually analysed down to the smallest detail over a period of months. If we come to the conclusion that the company is being traded more favourably on the stock exchange than it is actually worth, we strike. This is the same strategy used by Warren Buffett and many of the world’s most successful investors to outperform. You can learn all about our value investing strategy here.

Conclusion

The result of the benchmark test confirms once again how important the choice of investment philosophy is for investment success. Paired with a good asset manager, you can then beat the benchmark by a wide margin.

Better than the Benchmark

Estably is the first Liechtenstein-based digital asset management firm to offer world-class asset management through a blend of technology and human investment expertise. Thanks to the portfolio managers’ many years of experience in the field of value investing, the aim is to achieve above-average returns – starting at an investment sum of € 35,000. The aim is to make professional asset management, which was previously possible exclusively for major investors, accessible to everyone – in a convenient, transparent and profitable way. Everything about our service can be found in our whitepaper.

Further articles

July 24, 2020

Digital Asset Management

February 10, 2020

Digital Asset Management

December 16, 2019

Digital Asset Management

July 17, 2019

Digital Asset Management

March 23, 2019

Digital Asset Management

January 29, 2019

Digital Asset Management

January 17, 2019

Digital Asset Management

December 20, 2018

Digital Asset Management

December 20, 2018

Digital Asset Management
previous arrow
next arrow
Slider
Haben Sie Fragen?

Enjoy reading this 

article?

We'd love to inform you as soon as

we publish new posts like this one!