I am managing a virtual portfolio over a full market cycle starting at the beginning of 2014. The purpose of this blog is to present my portfolio management and investment skills to a broad readership and to build a track record that can easily be verified. In addition, this blog also functions as my personal investment diary. For me, it is important to keep written records of the investments I make. Being able to layout an investment case in an understandable manner, increases the chance to reduce missteps. Written records also provide an unbiased approach to reconsider investment decisions and to learn from mistakes.
WertArt is not trading the securities mentioned in reality. However, I might have a position in the securities mentioned in my own accounts. This blog does not provide any form of advice. The only advice I can give to the reader of this site is to do your own research and not to trade securities only based on the opinion of others.
The rules of WertArt’s virtual portfolio are as follows:
- starts in January 2014
in October 2013with an amount to be invested of EUR 10 m
- invests globally in listed securities, but with a focus on European companies
- limits single investment positions to no more than 15%
- normally takes long positions, but may take short positioning in selected cases
- must not have a greater net exposure* than 1.3 times portfolio assets managed
- can buy/sell not more than one third of the daily trading volume
- buys/sells securities at the daily volume weighted average price
- reports returns before taxes and trading costs
- invests cash at the EONIA rate +100bps (+50 bps from the beginning of 2015 / zero interest from June 2016)
*Net exposure represents the short exposure subtracted from the long exposure
My investment style focuses on small cap equities but does not completely exclude mid/large cap equities.
Many of the companies I invest in are located in Europe.
Apart from that, to a smaller degree I do also invest in the rest of the world.
As a consequence, I decided that the following two indices provide the best consistency with my investment style:
- Euromoney Smaller Europe (Exc. UK) Total Return (Weight 70%)
- Euromoney Smaller World Total Return (Weight 30%)
The goal is to beat this benchmark over a full market cycle.