Switzerland, asset management and commodities – the financial center offers a diverse range of “Center of Competence & Networking”. Markus Hill spoke for FONDSBOUTIQUEN.DE with Alex Rauchenstein, SIA Funds AG, about trends in value investing and commodities. Background of the remarks was the own event series on this topic in May this year (Last date: 27.5.2021, 11.00 am), where among other things points such as inflation, “5-Sigma-Event”, ESG, oil, and uranium were addressed. Together with his colleagues Prof. Dr. Carlos Jarillo, Urs Marti, and Marcos Hernandez, his team will again hold a commodity day in Switzerland (10.9.2021) and discuss this topic with institutional investors on-site in Frankfurt am Main (14.9.2021). (A recent reading reference on the topic area by Urs Marti: “The World for Sale” – Authors: Bloomberg journalists, Javier Blas & Jack Farchy).
Hill: You had a webinar last week with your colleague on Value Investing & Commodity Stocks. What was the feedback on your event, what topics attracted particular interest?
Rauchenstein: We see that investors are interested in the commodity theme and that they want to protect their portfolios against potential inflation risks. In our eyes, a well-diversified portfolio should also include some commodity stocks, because this allows purchasing power to be maintained even if prices rise. The valuations of many of these companies are so attractive that not even a rise in commodity prices is necessary. But since we expect this increase due to tight supply for many commodities, we consider commodity stocks to be very attractive. Put another way: Investing in commodity stocks gives you a good hedge against possible inflation, but this hedge can also be very profitable.
Hill: During your presentation, you presented an interesting thought on value investing and the “5-sigma event.” What exactly is behind this term?
Rauchenstein: If you compare the Value / Growth ratio since the launch of these indices in 1975 and evaluate them quite simply statistically with the mean and + / – 2 STD (standard deviations, or sigma), you find that before the TMT bubble burst, this ratio stood at + 2 STD before a renaissance for value stocks began. Last fall, this ratio stood at + 5 STD, an absolute extreme event (see chart below). In our eyes, this speaks for a renaissance of value stocks.
Hill: This week, you and your team will be hosting another webinar on 5/27. Who will be there this time and what additional topics will be discussed on this date?
Rauchenstein: Yes, on Thursday, 5/27, we will still be holding our customer webinar in English, which will be attended by all of our SIA Funds AG partners – that is, Prof. J. Carlos Jarillo, CIO Marcos Hernandez, Urs Marti, and myself. At this event, we will additionally discuss in detail the development of our funds, the Long Term Investment Funds Classic (Global Value), and the Long Term Investment Fund Natural Ressource.
Hill: Looking beyond the webinar dates, are you currently already planning “live events” with your investors again?
Rauchenstein: Yes, like last year, we assume that “live events” should be possible again in the fall. Accordingly, we have planned this year’s Commodity Day on Friday, September 10, in Zurich. This is the fourth time we have held this event, also with external specialists from individual companies in this field.
Likewise, on Tuesday, September 14, our lunch presentation will take place for the ninth time at the MainNizza in Frankfurt. Our whole team is already very much looking forward to holding face-to-face events again. We would be delighted to welcome you back again.
Hill: Thank you very much for the interview and your invitation. There will certainly be another opportunity for interesting discussions in Frankfurt in September.
Additional information “Commodities 2021 Event Series”: email@example.com
Value Investing & Commodity Stocks (videorecording)
SIA Funds AG: www.s-i-a.ch
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