Despite recent upheaval caused by the country’s elections, leading lights in German equities have been able to produce high levels of return over the longer term.
In this analysis, Citywire Selector focuses on the two Equity – Germany managers or manager teams topping the sector on a five-year total return basis.
We take a closer look at their current investment thinking to see how they have forged ahead amid rising investor interest and the ability to invest across.
*Data covers the period September 2012-September 2017.
2. Hendrik Leber & Frank Lübberstedt, Acatis Investment
Performance: Five-year total return of 106.13% with a Manager Ratio of 0.37.
Experience: Leber has managed funds at Acatis since 1995 and is currently a partner in the firm. He is a named manager on 10 equity funds at Acatis, which all have a value focus. Lübberstedt co-founded Ehrke & Lübberstedt Asset Management in 1995 and has been managing funds since 2003.
Citywire rating: Leber gained a + rating in August 2017 after being unrated for more than a year. He gained his first rating in June 2005 and was AAA-rated in July, September and October 2006. Lübberstedt has not held a rating since March 2014. He had a rated streak between May 2010 and November 2011 where he fluctuated between an A and an AA. He has never held an AAA rating.
Investment style: Leber and Lübberstedt have co-managed the fund since it launched in January 2003. Currently they prefer technology, which is the largest sector in the portfolio at 33.86%. They have also allocated 15.10% of the fund to industrials and 10.7% to financial services. Mechanical engineering firm Meyer Burger Technology is the largest holding in the fund at 6.01%, while IT firm SAP makes up 4.22%.
1. Ivan Larsen, Danske Capital
Performance: Five-year total return of 106.16% with a Manager Ratio of 0.4.
Experience: Larsen started his career with the Bank of Copenhagen in 1993 before joining Nordea Securities in 1995 as a senior analyst. He then moved to Dankse in 1998 where he now manages European small-cap funds along with German equity funds.
Citywire rating: Larsen gained a Citywire + rating in May 2017 before climbing to an A rating in June. He gained his first Citywire rating in May 2007 and was rated until June 2010. Over this period he never dropped below an A rating and spent nine of these months with an AAA rating. He was unrated between June 2011 and April 2012.
Investment style: Larsen invests for the long term and recommends investors keep their money in the DanskeInvest Sicav Germany fund for around eight years. In terms of sectors, he favours industrials, which is the largest allocation in the fund at 18%.
This is followed by materials at 17.9%. Industrial camera maker Basler is the largest company holding at 5.24% of the fund. Larsen has also managed a German equity fund solely for Denmark-based investors since 2006, which follows a similar approach.
This article originally appeared in the October edition of Citywire Selector magazine.