A Team of Experienced Partners co-invested in our funds
Dr. Ulrich Niederer
Chairman and Senior Partner
As Chairman of ARTICO Partners, Ulrich oversees the business strategy, the product development and the investment activities of the firm. Operationally, he is directly responsible for Risk Management and Compliance. Ulrich is a Founding Partner of ARTICO.
Ulrich has more than 30 years of investment experience and started his career as quantitative research analyst in 1986 at the then Swiss Bank Corporation. His various functions at SBC and later UBS Global Asset Management included: Chief Investment Officer, Co-CEO Switzerland, Chairman of the Swiss Business and Head of the Alternative Investment Management Business (Private Equity, Hedge Funds, Infrastructure). Ulrich holds a PhD in Nuclear Physics from University of Basle.
Dr. Gabriel Herrera
CEO and Senior Partner
As CEO of ARTICO Partners, Gabriel is responsible for all aspects of the business including the product development, client relationships and the investment activities of the firm. Gabriel is a Founding Partner of ARTICO.
Gabriel has more than 30 years of investment experience and started his career as equity research analyst in 1987 at the then Swiss Bank Corporation. His various functions at SBC and later UBS Global Asset Management included: Head of Equity Research, Co-CEO Switzerland and then CEO Europe Middle East & Africa. Gabriel holds a PhD in Economics from University of Basle.
CIO and Partner
As Chief Investment Officer Tero is responsible for the research and development of investment strategies and portfolios. His responsibilities include the continued development of the investment platform and the portfolio management of ARTICO funds.
Tero’s background contains several years of experience in global equity portfolio management and prior experience in the areas of software development, quality management and team leadership. Tero holds MsC in computer science from the Helsinki University of Technology and MBA from the Purdue University. Tero is also a CFA Charterholder.
Head PM and Partner
Michael’s main responsibility is the portfolio management of ARTICO funds. His further responsibilities include the development of the investment platform, and research and development of investment products and strategies.
Michael holds diploma certificate in electrical engineering and MBA from the university of South Australia. He has several years of experience in global equity portfolio management and prior experience in software development in the areas of telecommunications, medical engineering and finance.
COO and Partner
As Chief Operating Officer of ARTICO, Andreas is responsible for the operational part of the investment management, including the fund operations and trading activities.
Andreas‘ background involves several years of work experience in the finance industry, mainly in global equity trading and operations functions. He is holder of Swiss federal diploma in business organization and a diploma in applied psychology.
Investor Relations and Partner
Stephan’s main responsibility is the management of Artico’s relationship to professional and qualified investors in our funds.
Stephan has more than 30 years of investment experience and started his career as equity research analyst in 1987 at the then Swiss Bank Corporation, later UBS. His functions included: Head of Portfolio Management for Swiss Equities, Head of Product Management for Institutional Funds. He worked as CEO of the respective asset management business for Bank am Bellevue, the BZ and Clariden Leu. Stephan holds a Masters in Economics from the University of Basle and the CEFA title from the AZEK. He is a Board Member of the Swiss Financial Analyst Association and AZEK.
As significant co-investors in our funds at the same conditions than our clients, we have „skin-in-the-game“. Is there a better way to fully align our interests?
If it sounds crazy and it looks crazy…it is probably crazy
In July, the market recovery continued for the 4th consecutive month: Global Developed Markets were up 4.8%, Global Small Caps gained 4.9% and Emerging Markets were up even 8.9%!
The FED’s statement that they are „not even thinking about thinking about interest rates hikes“ provides for expectations of a long-term low interest rate environment
ARTICO stock selection was broadly in line with benchmarks, outperforming investment universes
In a way, one could feel being in the wrong movie – think about this:
Plummeting economic activity
a central bank monetizing sky-rocketing fiscal deficits
riots on the street, mounting protectionism and political populism
and add to that a weakening national currency….:
Is that a doomsday scenario or a short summary of Latin American economic history?
No: It is the current setting in the US and most parts of the developed world….and a big concern for the long-term outlook
However, as long as the US dollar is an accepted global currency, the US will not experience the devastating consequences of its Latin American-style economic policy
At the same time, global equity markets seem to ignore all of that and are comfortable with pricing in long-term prosperity at zero interest rates
And as long as interest rates are expected to stay low for the long-term, there is no better investment alternative than equities
After 4 consecutive months of rebounding markets, it would be reasonable to expect some turbulences in the months to come
In crazy times like today, it is a smart strategy to be invested in a diversified portfolio of companies with high growth rates, high profitability, a low valuation, an excellent ESG ranking and very low carbon footprint
In June, the market recovery continued: Global Developed Markets were up 2.6%, Global Small Caps gained 3.8% and Emerging Markets were up a full 7.4%
ARTICO stock selection was in line in Developed Markets, while lagging a little in Emerging Markets
The old saying „Don’t fight the Fed“ proved correct again
Massive fiscal and monetary stimulus packages worldwide have convinced markets that authorities will
„do whatever it takes“
Investors seem to focus on the long term, possibly also discounting „lower rates for longer“
Danger signs remain with a strong rebound in infections in the US and the unabated rise in South America
After the crisis, markets will have to deal with unprecedented fiscal deficits, government debt levels and bloated balance sheets of central banks
Artico funds rank in the top 10% in terms of ESG quality (rated by MSCI)
This top rating in terms of ESG quality combines with unique fundamental characteristics: high growth rates, a superior profitability and a big valuation discount
Looking Again on the Bright Side of Life: An apparent disconnect between Markets and Economy
• In May, market recovery continued: Global Developed Markets were up 4.8%, Global Small Caps gained 6.0% and Emerging Markets were up 0.8%.
• ARTICO stock selection outperformed in Global Core and Emerging Markets and was slightly behind in Global Small Caps.
• There is an apparent disconnect between Equity Markets and the Economy
• Investors seem to focus on 2021/2022 and beyond, ignoring horrible economic data and bad profit numbers for the current quarter
• In addition, investors have also to deal with rising US-Chinese tensions, significant civil unrest in the USA and huge challenges facing Europe (EURO zone stability, Brexit)
• After the crisis, markets will wake up in a world with unprecedented fiscal deficits, government debt levels and monetary expansion.
• So: What justifies buoyant equity markets?
• Looking at absolute and relative valuations, the apparent disconnect does follow a certain logic:
• Absolute Company Valuations are based on future discounted cash flows; a weak quarter has little impact on such fundamental valuation , while reduced interest rates even improve such valuations
• In relative terms, the unprecedented monetary flood leads to a flight into real assets as holding nominal debt of potentially bankrupt governments looks increasingly threatening
• Nevertheless, expect large swings in the short term
• It is therefore more than ever a good strategy to stay invested in fundamentally good companies
• The companies we invest in have a unique combination of characteristics which cannot be found elsewhere: high growth rates, a superior profitability, a higher ESG quality score, a very low carbon footprint and a big valuation discount at the same time.
A sweet & sour cocktail full of potential surprises
Markets look already into 2021/2022, but remain exposed to short term volatility
The sharpest decline in history was followed by the steepest recovery in history.
In April Global Developed Markets were up 10.9%, Global Small Caps gained 12.5% and Emerging Markets were up 9.2%.
Markets are exposed to big short term uncertainties, but have shifted focus into 2021/2022, explaining the current disconnect between recovering equity markets and deteriorating economic news
After Corona, markets will have to deal with unprecedented fiscal deficits and inflated central bank balance sheets. Could be a further step towards a currency reform.
„Asset Price Inflation, Part 2“ is likely to play in the years to come. Logic investment focus should therefore be on real assets which is favorable to equities.
Expect large swings in the short term
The potential sour ingredients are many: Worse than expected recession, serious EURO-zone instability, rising tensions between US and China and a worsening of the global pandemic (second waves, global surge of new hotspots)
The possible sweeteners are faster than expected progress on the medical cure and vaccine front, a faster return to normality and the economic benefits from unprecedented monetary and fiscal stimulus
It is more than ever a good strategy to stay invested in fundamentally good companies
The companies we invest in have a unique combination of characteristics which cannot be found elsewhere: high growth rates, a superior profitability, a higher ESG quality score, a very low carbon footprint and a big valuation discount at the same time.
The Great Paradox: A Huge Price-Tag for Slowing the Virus
ARTICO is fully operational during these turbulent times. Since over three weeks we have switched to home-office mode and remote access works very well for all our tasks. We do regular partner meetings over Skype and keep an optimistic attitude that at some point the current storm will be over. In the meantime, you can reach us via mail or phone anytime. Stay healthy!
Within a few weeks the world has been turned upside down: Panic resulted in a large sell-off in March with some recovery towards the end of the month
YTD Global Developed Markets were down 21.1%, Global Small Caps lost 29.3% and Emerging Markets were down 23.6%.
Only hindsight will tell whether the global lockdown was the right choice to preserve humanity and its medical system or whether the economic, social and humanitarian consequences of this lockdown will unfold as the much more terrible outcome
Strict quarantine measures seem to mitigate the spreading of the virus. Social distancing, tracing apps and systematic testing pave the way for a termination of the lockdowns. Progress can also be expected from the therapeutic front.
The post-pandemic world, however, will be one with huge fiscal debt burden and unimaginably inflated central bank balance sheets
A sharp recession is also inevitable. It is however unclear how fast the recovery will be.
Valuations look of course attractive, but impact of lockdown is not yet reflected in actual Sales figures.
Financial Crisis fears will rise due to latent EURO-zone instability and uncertainties surrounding the level of leverage and related credit risks across the system.
Stay the course of your strategy, re-balance systematically and if you were underinvested in equities, consider a phased approach to build up your risk positions.
It is more than ever a good strategy to stay invested in fundamentally good companies
Sustainable Investing: Encouraging Evidence for Investors!
Is sustainable investing a positive or negative contributor to outperformance? And how patient do investors need to be to capitalize on any positive effects? Our research results answer these questions and our conclusions on the required time horizon may come as a surprise for investors hesitating to introduce sustainable investing.