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Investing in Good Companies

Welcome! We are a different asset management company:

  • Our unique fundamental portfolio characteristics result in a higher probability of outperformance
  • Our stock selection has superior ESG & Sustainability scores and very low Carbon Footprint
  • As significant co-investors in our funds we have skin-in-the game
News

How long will the Music Play this Time?

ARTICO Sustainable Equity Funds

Access fund information

Investment Strategy
Unique Portfolio Characteristics Deliver Superior Performance

The higher outperformance probability comes from investing in companies with high scores in the following 5 dimensions:

 

Our proprietary research on relevant fundamental selection criteria is the foundation of our fundamental model. We published the key results in the Wilmott Magazine

READ the full Wilmott Article

 

and a shortened version in Finanz und Wirtschaft

READ Article in Finanz & Wirtschaft

 

Our Outperformance comes from three sources:

  1. The fundamentally best companies have a higher probability to outperform
  2. Diversifying into a large number of good companies ensures robust outcomes
  3. Investing beyond benchmarks creates a larger set of opportunities
READ our Company Fact Sheet

Fully Integrated ESG/Sustainability Criteria

 

What is our Motivation to apply ESG?

High ESG scores will outperform, because they:

  • Are a good proxy for superior management
  • Will attract significant institutional flows
  • Contribute to Investment Risk Mitigation

What makes our Approach to ESG unique?

We create portfolios with superior fundamental characteristics and very high ESG Scores and very low Carbon Footprint at the same time

What is the expected Performance impact of ESG?

We analyzed the MSCI ESG database and developed our own ARTICO ESG factor, which is a good predictor of future outperformance

 

Published ARTICO Research:

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.

READ the full article published in Wilmott Magazine (Sep 2020)

 

READ our Principles for Responsible Investing

 

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.

Tero Toivanen
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.

Michael Brenneis
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.

Andreas Konrad
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.

Stephan Meier
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?

READ why having „skin-in-the game“ is essential
ACCESS our Company Fact Sheet for more Information

 

Board of Directors ARTICO Partners AG

  • 
Dr. Ulrich Niederer, Chairman
  • Dr. Gabriel Herrera
  • Thomas Huber (Independent Director)
  • Neil Stiefel (Independent Director)
  • Dominique Bertrand

cfi.co award 2018 winner switzerland

News

How long will the Music Play this Time?

  • Markets continued their rally in December 
    • Global Developed Markets were up 4.2%, Global Small Caps gained 7.2% and Emerging Markets advanced 7.4%
    • For the full year 2020 global equity markets were up 16% (Developed Markets) to even 18% (Emerging Markets) despite pandemic and lockdwons
  • Artico stock selection for the full year was negatively affected by large cap growth stocks significantly outperforming small caps
  • The valuation gap between small and large cap stocks has considerably widened
  • Equity markets are driven by apparent over-optimism 
    • Enthusiasm has reached retail market (usually not a good sign)
    • Tesla has performed over 1000% in just over one year and Airbnb’s IPO was exuberant. Just two of many warning signals that markets are overheated
  • Valuation approaching or exceeding all-time highs
  • Markets are climbing on thinner ice as they have entered the danger zone
  • However: Unlimited money supply functions as a safety net, providing plenty of oxygen for this climb to go further
  • Meanwhile government debt levels keep rising and central banks finance it while keeping interest rates ultra-low
  • How long can such governmental Ponzi scheme last? Nobody knows really.
    • Economic growth alone is unlikely to resolve the problem
    • Debt restructuring or even monetary reform are very ugly scenarios
  • Stay focussed on real assets, avoid nominal assets
  • Artico Sustainable Equity Funds are well positioned for such a unpredictable future  for three reasons:
    • First, Artico is invested in companies with fundamental characteristics of highest quality
    • Second, Artico funds have no style bias (growth versus value) and are not exposed to one particular style
    • Third, Artico funds cover the full spectrum of market capitalization. So, any normalization of valuation between small and large cap stocks will tend to benefit our funds due to their small cap exposure
Access Fund Documents and Monthly Report

Prepare to enter the Danger Zone

  • Markets sky-rocketed in November fueled by optimism on vaccines, further stimulus packages and sustained economic recovery 
  • Global Developed Markets were up 12.8%, Global Small Caps gained 14.3% and Emerging Markets advanced 9.2% in one month!
  • Artico stock selection for the full year was behind markets, as the performance was mainly driven by large cap segments of the market, while small caps underperformed
  • This has significantly increased the valuation of large cap stocks and considerably widened the valuation gap between small and large cap stocks (feel free to contact us for our research on this matter)
  • Equity markets show now too many similarities with 1999 (value out of favor, over-concentration on few large caps, exuberant valuations, retail euphoria, margin-debt levels record-high) to fully ignore these warning signs
  • Also, the same discussion has started, whether or not „this time, it is different“
  • Indeed, some aspects are clearly different: First, several of the hyped companies have become money-making machines and secondly, the unprecedented monetary and fiscal stimulus is of a size not even imaginable 20 years ago
  • So, while markets have become exuberant, they can also stay extreme for much longer. Given valuations and over-confidence, we need to prepare to enter the danger zone. That does not mean a collapse is imminent, but it requires a disciplined investment approach
  • Artico Sustainable Equity Funds are well positioned for such unpredictable future for three reasons:
    • First, Artico is invested in companies with fundamental characteristics of highest quality
    • Second, Artico funds have no style bias (growth versus value) and are not exposed to one particular style
    • Third, Artico funds cover the full spectrum of market capitalization. So, any normalization of valuation between small and large cap stocks will tend to benefit our funds due to their small cap exposure

Turbulences could offer interesting opportunities

  • Markets were bifurcated in October: Continued weakness in developed markets, while Emerging Markets benefitted from economic recovery and better control of the pandemic 
  • Global Developed Markets were down 3.1%, Global Small Caps lost 1.3% and Emerging Markets were up 2.1%
  • In the short term markets could have to deal with chaotic developments, political paralysis and legal disputes and maybe even serious civil conflicts 
  • The development of the pandemic across Europe and the US could also add more short term stress to markets
  • Nevertheless, the outlook for equity markets is positive due to global fiscal and monetary stimulus and the prospect of very low interest rates for a very long time
  • Therefore – if markets show more signs of short term stress in the near future it may be a good time to seize such opportunities
  • In the current environment, 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

Quo vadis?

  • Market recovery took a breather in September amongst rising concerns about a second wave and political uncertainty (US elections, Brexit)
  • Global Developed Markets were down 3.4%, Global Small Caps lost 1.4% and Emerging Markets were down 1.6%.
  • Artico stock selection contributed positively, particularly in Global Small Caps 
  • There are many reasons for investors to become more cautious in the short term:
    • Following faster than expected recovery, valuations have reached historically high levels
    • Uncertainty surrounding US presidential elections and the potential for a disorderly transition of power
    • The recent surge in COVID Cases and the related more restrictive measures result in fear of slowdown of economic recovery
  • Global Equities however will continue to benefit from the current fiscal stimulus and monetary conditions in the foreseeable future
  • The investment opportunities in cash or bonds look much less attractive in relative terms.
  • In the current environment, 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

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 published 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.

Read the full article published in Wilmott Magazine (Sep 2020)

Contact

ARTICO Partners
Stockerstrasse 50
CH-8002 ZĂĽrich

Tel: +41 44 201 40 20
E-mail: info@artico-partners.com