Investment Focus

After 20 years in the IT-Industry I’ve seen database and browser wars in the 90’s, was in the center of the tech-bubble in 2000 and left with the remains of a former New Economy Star.

At a fairly young age I’ve seen the full life cycle of a company and unlike other fellows I studied every single phase carefully. I’ve developed strategies and implemented them. I run multi-million dollar investments with a clear and strong vision and won multi-million dollar contracts from Fortune500 companies.

I started investing just after the 1987 crash and I decided early on that I’m not a long-only guy. I developed quantitative strategies for the US Futures Market - mainly S&P and CRB based. Those Models were based around Risk-Models and focused strongly on Money-Management - similar to Risk Parity.

It turned out that the Software I've developed was worth something and launched a successful career in the IT industry for me, which come to an end in 2008 as TOP-Executive of a NASDAQ listed company.

Today, full-time investor again,  I hardly found investment products which were holding what they promise and compensate risk with adequate return. So I became creative with a bunch of people and we defined a product which we would love to buy but didn’t exist.

I’m a classic value investor. I love profitable companies with a solid cash-flow. I get rid of systematic risk and focus solely on the value of the company - unsystematic risk, which in hedge fund terms translates to Market Neutral strategy.

We are all risk averse and we are absolute return guys not on a 3-5 year horizon but on a p.a. investment period. We need regular cash - disbursements to make a living.

As we don’t need daily liquidity of our capital, provided the risk-adjusted returns are adequate, we decided a 5-10 year investment horizon is what we would be comfortable with. This enables us to consider investments in non-liquid markets like equity, property etc.

Now that we had the parameters, we’ve decided that we rather invest in companies and in the area we have a 20+ years of expertise - IT, Software and Services - usually asset-light companies.

As we are interested in value play only we've purchase companies with a minimum of 3 years profitability and 50 + % recurring revenues.

We are less scared if the company has a single-customer dependency as we can diversify this risk on a portfolio level.

Usually human capital is the only assets of those companies and we pay great attention to key-staff retention and long term motivation.

We focus on fairly small companies below 5 m revenues as we find the valuation models are not efficient for this type of companies. The ticket size is simply to small and the costs for due dilligence would be not proportional for PE funds. Therefore there is no transparent benchmark for this investments.

Our key strength is a extremely low administration fee. Due to our expertise we have developed a structured Due Diligence process, which saves us a lot of time and money.

We attempt to do 6 transactions p.a.

We are less demanding on growth rates as long as the inflation is compensated.

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