9/8/23 7:00 AM - Lesezeit

Gutmann Core Equities: Balance Wins Out

Robert Karas

Chief Investment Officer, Partner

Only 7 stocks are responsible for the price increase on the stock exchanges worldwide this year! This or similar are the excited headlines that draw our attention and  entice us to click. Rein in your desire, whatever follows is not worth your interest. 

Is anyone actually invested exclusively in these 7 stocks? Probably not. You don't have any of the 7? Then there's nothing to worry about. The majority of the articles want us to know that this narrow market rise is a warning sign and bad things are coming. 

Let's take a look at the Gutmann Equity Strategy portfolio. There you will find 4 stocks of this group: Alphabet (the Google parent), Apple, Microsoft and Nvidia. The last name is probably the biggest media star among the glorious 7. The promises of artificial intelligence catapulted the chip design company strongly upwards since the beginning of the year. 

You were just about to become a new client at Gutmann, but now you're hesitating. “I'm still supposed to invest there? What if it's just a bubble that's about to burst?” A fair question. Most star investors only come to the public's attention after their mutual funds or ETFs have staged a multi-year rally (remember Cathie Wood and Ark Invest?). At the peak, large sums of money flow into the financial vehicles before the crash comes. Then, at the end of the journey, the dollar or euro losses far exceed the gains made earlier. 

Managing concentration risks

At Gutmann portfolio management, protecting your assets and growing them are the top priorities. Exactly in this order. Whether you are a new client or want to increase your mandate, you don't have to worry. We also think about tomorrow and avoid concentration risks. Of course, even we cannot avoid the general fluctuations of the stock market.

70% of the Gutmann equity strategy is currently invested in the Gutmann Core Equities strategy. There we hold, among others, the 4 international stocks mentioned. Do we now have a huge Nvidia position after the recent rises? No. Our discipline of anticyclically cutting back winners and rebuilding losers several times a year prevents that. Nvidia is not a short-term hype stock in the Gutmann portfolio. We have been invested since April 2018. Admittedly, over the past few years, this investment has been a wild ride. The stock lost more than half its value in the difficult year of 2022 before more than tripling this year. [1] Our approach in retrospect: in 2022 we bought the stock at 3 times, while this year we sold it 3 times already. 

In 2023, the profit-maximizing method would have been to hold on to the position. But discipline is discipline and in the long run our approach is advantageous. 

[1] Past performance is not indicative of future returns.

Disclaimer: This is a marketing communication. Investments in financial instruments are exposed to market risks. Past performance does not predict future returns. Forecasts are not a reliable indicator of future performance. Tax treatment depends on each client's personal circumstances and may change in the future. Bank Gutmann AG hereby explicitly points out that this document is intended solely for personal use and for information only. Publishing, copying or transfer shall not be permitted without the consent of Bank Gutmann AG. The contents of this document have not been designed to meet the specific requirements of individual investors (desired return, tax situation, risk tolerance, etc.) but are of a general nature and reflect the current knowledge of the persons responsible for compiling the materials at the copy deadline. This document does not constitute an offer to buy or sell or a solicitation of an offer to buy or sell securities. 
The required data for disclosure in accordance with Section 25 Media Act is available on the following website: https://www.gutmann.at/en/about-gutmann

Investment in financial instruments respectively investment funds is subject to market risks.
Due to the composition of the portfolio and the used portfolio management techniques the Gutmann Core Equities under certain circumstances can show an increased volatility, i.e. the value of units may be exposed to high up- and downturns within short periods of time.
Further Information on the main risks of the Fund can be found in the Key Information Document ("PRIIPs-KID") as well as the prospectus or the information for investors pursuant to Article 21 Act on Alternative Investment Fund Managers (AIFMG - Alternatives Investmentfonds Manager-Gesetz) under the item "Risk profile of the Fund".
The fund pursues an active management strategy without reference to a benchmark.

All figures made without guarantees. Errors and omissions excepted.
For interested parties the Key Information Document (“PRIIPs KID“) in accordance with the Regulation (EU) No 1286/2014 for Gutmann Core Equities respectively the prospectus in accordance with section 131 InvFG for Gutmann Core Equities in their current versions are provided in German language free of charge at Gutmann KAG and Bank Gutmann AG, both Schwarzenbergplatz 16, 1010 Vienna, Austria and on the Website www.gutmannfonds.at as well as for Gutmann Core Equities at the German information center Dkfm. Christian Ebner, Attorney at Law, Theresienhöhe 6a, 80339 Munich . The distribution of fund units was notified to the German Federal Financial Supervisory Authority (BaFin). Gutmann KAG may de-notify the distribution of funds in Germany as far the conditions according to Art 93a of Regulation 2009/65/EG are fulfilled
Further information on the sustainability-relevant aspects of the Fund can be found at www.gutmannfonds.at/gfs.

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