Deep Research Fund
Insights

Smart Capital Allocation

The cho­ices a com­pany makes when it comes to all­o­c­ating its res­o­u­rces not only impact the firm’s value, but may even put its sur­v­ival at risk. The fol­l­o­wing Ins­ight dives deeper into the opt­ions that man­a­g­ement has in all­o­c­ating cap­ital and out­l­ines what our pre­f­e­rences are.

Voting Policy

Reading time 8 minutes

Active own­e­r­ship is a key com­p­o­nent of our inv­e­s­tment str­a­t­egy. In this Ins­i­ght, we would like to exp­lain how we think about exe­r­c­ising our voting rights and pre­sent a short sum­mary of our int­e­rnal voting gui­d­e­lines. While by no means exh­a­u­stive, this Ins­ight also sheds light on the cha­l­l­enges ari­sing from unique voting pro­p­o­sals and how we app­r­oach them.

Integration of sustainability into our research process

Reading time 20 minutes

The Deep Research Fund’s objective is to ge­nerate a return for its clients by carefully selecting and investing in companies that can withstand difficult times, are managed with the long-term view in mind, and comply with high sustainability standards. To implement these sustainability standards, we systematically integrate our sustainability concerns in all parts of our investment process.

Approach to Exclusions at the Deep Research Fund

Reading time 8 minutes

In this doc­u­m­ent, we int­r­o­duce the types of exc­l­u­sions we imp­l­e­ment in our res­e­arch pro­c­ess. Most of them are based on our sus­t­a­inability cri­t­eria and create hard limits on what we con­s­ider an acc­e­p­table por­t­f­olio com­p­any. Others are based on past enc­o­u­nters with par­t­i­cular iss­ues, circle of com­p­e­tence or ind­u­s­try­specific con­s­i­derations. This doc­u­ment exp­l­ains our thi­n­king and det­ails the rules behind the exc­l­u­sions as well as their res­ult. In the con­c­l­usion, we use the exa­mple of our scr­e­e­ning pro­cess to ill­u­s­trate how exc­l­u­sions reduce our res­e­arch uni­v­erse of close to 100­’000 com­p­a­nies by more than half.

How do we work in Sustainability?

Reading time 15 minutes

What does Sustainability mean to us? Sustainability has been part of our investment process since the early days of the company’s founding. At that time, we simply believed that it was the right thing to do; just like every team-member tried to lead their lives in a socially-conscious and environmentally-friendly way, we believed we should invest in companies that lead their corporate existence with a similar philosophy.

Return Breakdown

Reading time 15 minutes

Most port­fo­lio re­turns are bro­ken down into three com­ponents: cap­ital gain, div­idend pay­ment, and move­ment in the for­eign ex­change rate. We de­vel­oped a meth­od to drill down and at­trib­ute re­turns to their true ori­gina­tion, such as the ex­pan­sion of a bus­i­ness, mar­gin im­prove­ment, smart buy­ing and sell­ing, or sim­ply the cash earned by a com­pany. In this In­sight re­port, we pro­vide you with an un­der­stand­ing of our de­tailed re­turn ana­lysis.

Dealing With Mistakes

Reading time 10 minutes

In this report we would like to ela­b­o­rate on how we deal with mis­t­a­kes, how we rec­o­g­nize them and how we create a cul­ture in which we can learn from past mis­t­a­kes.

Screening Model

Reading time 5 minutes

Every stock market str­a­tegy needs a source of new inv­e­s­tment ideas. Our qua­n­t­itative scr­e­e­ning model dis­c­o­vers stocks we may have never tho­ught of, cut­ting thr­ough all human bias str­a­ight to the tar­get.