The composition of the portfolio is based on the insights of our own research and consists of attractively valued companies that trade at considerable discounts to their fair value. The higher the fair value relative to the current market price, the larger our investment. The smaller this difference becomes due to rising stock prices, the more dynamic we cut our position.
The portfolio weightings (sectors, industries, regions, countries) are not tied to a benchmark or a top-down macroeconomic assumption, but simply the sum of the individual investment holdings. Nonetheless, for diversification purposes we never invest more than one-third of the portfolio value in a particular sector, or six percent in a single stock position.