The Fund
The Jolimont Value Fund is a worldwide diversified equity and bond fund. It is designed for the long term investor, with the objective to achieve capital growth in excess of inflation over a time horizon not shorter than three to five years. Kraemer, Schwab & Co. AG, the asset manager, aims to identify undervalued stocks and bonds, often found in sectors and markets unpopular and out of fashion at the moment of purchase. Equity investments are typically well financed companies, with low cyclicality, primarily located in Western Europe and North America. Bond investments are typically attractively priced government bonds, often found in emerging markets.
Value investing
Value investors seek to buy companies whose shares appear under priced relative to the underlying fundamentals. As these types of investments are often found in out of favour industries or companies, strict emotional discipline, patience and focus on long term absolute returns are key tenets of the approach. In times of excessive pessimism bonds below investment grade offer very attractive yields, more than compensating for credit risk when purchased as a well diversified basket.
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Contrarian Investor
Many investors overlook quality companies whose prices have fallen in overreaction to events that are transitory in nature. The quest for value is often lonely and contrarian, it requires emphasis on fundamentals rather than market sentiment, independence of judgement and a long term time horizon.
Buy and Hold
Value investors view stocks as fractional ownerships in businesses: once partners in exceptional companies at reasonable prices, staying with them a long time allows to profit fully from the growth of their cash flows. High yielding bonds of acceptable quality also allow decent returns and provide continuing cash flow for future investments.
Independence and Continuity
Kraemer, Schwab & Co. AG is an independent partnership focused on value investing since its incorporation in 1983. Such a structure provides stability and continuity over time, in perfect alignment with the investment philosophy.
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