Investment Philosophy

Investment Philosophy

Merit Capital stands out from other wealth managers by focusing on the preservation of capital, without losing sight of the up-side. Preservation of capital in difficult market conditions is key for long-term return on investment.

A good wealth manager therefore drives down the risks when the markets are starting to show some negative signals. Merit Capital has made this an integral part of its management policy, but it also gets the advice of independent, specialist wealth managers who share the same investment philosophy.

  • Important market indicators, such as the risk premium, volatility, and stress in the financial system, are key factors in the development of the investment policy. Merit Capital also uses a unique market-timing model.
  • The basis of the share component of your portfolio is a selection of well-performing share funds. This allows us to ensure spread investments across geographic regions, business sectors, and investment styles. We have a preference for smaller, independent and specialised fund managers, who do not always follow benchmarks. The performance and risks are followed closely using, for example, Morningstar Direct.                            
  • Direct investment in individual shares continues to be a cornerstone of our independent weatlh management. Our share analysis is based, amongst other things, on the research of William O’Neil + Co., an American research firm with more than 50 years of experience.
    O’Neil combines fundamental research with a technical analysis that studies the top stocks on the American
    stock market since 1880. In addition to William O’Neil + Co., we also use the research of other renowned companies. This enables us to compile a
    strong and extensive selection of shares in an independent and well-founded way.
  • Fund managers with a focus on absolute return, who actively arbitrate between the most important asset classes, are a second core feature of the portfolio selection. In other words, the fund managers are able to invest more defensively whenever the market circumstances require it.
  • Last of all, for the bond component of your portfolio our mix is compiled with several specialist bond fund managers.