CEEAAM - Investment Philosophy
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Investment Philosophy

Investment Philosophy

CEEAAM’s approach to capital and money markets is reflected in the investment philosophy presented below.

We are active investment managers.

• We believe that excess returns on market portfolios can be achieved exclusively with active long-term wealth management techniques.

• We believe that the markets, especially emerging markets such as the Central Eastern European market, are not efficient. Our task is to identify the market segments that are mispriced and to find out when the period ends.

• We believe that the investors in the CEE region are not equally well informed, which means that those who receive accurate information faster from authentic sources and can draw better conclusions have a comparative advantage over other market participants.

• We believe that when selecting an investment, the decision on asset allocation is more important than market timing. There is a major share of investors who concentrate on timing and use various technical indicators to determine when to buy or sell. As there are too many market players using the same techniques, it gets increasingly difficult to attain high returns.

• We believe that markets very often overreact to new information in the short term. Therefore, our investment strategies are based on shorter term investments.

• We believe that important market news reaches investors at different points of time, and as a result the markets tend to have a momentum. To capitalize on this observation CEEAAM applies trend-based strategies.

• We believe that one sole investment strategy cannot lead to financial success. CEEAAM uses a blend of investment strategies.

• We believe that active investment management has to be synchronized with sound risk management. Risk and return have to stay consistently balanced. In order to achieve higher-than-market average returns for our investors, we have to take risks. Our active risk management techniques and monitoring processes help us predict and avoid unexpected and intolerable losses.

• We believe that our dynamic diversification strategy will help us decrease unsystematic risks in the portfolios without sacrificing long-term results. The return and volatility of different asset classes may vary on a large scale, so we try to feature representatives of each of the attainable asset classes in the portfolios within the limitations set in the portfolio management contract.

• We believe that our investors have to be routinely informed about their portfolios. We will provide clear explanations regarding why we bring them decisions to purchase assets, and we will clearly state our expectations relating to each investment.

• We believe that we can produce above average returns for our investor while shouldering reasonable risks.