„Unicredit knows how it's done in Germany“
Frankfurt-based fund boutique Shareholder Value Management recently celebrated its 25th anniversary at the Nizza restaurant on the River Main, and looked back with their guests on a quarter of a century of successful company history.
Shareholder Value's motto is „We live shares“, and this can be taken literally. In an interview with Börsen-Zeitung, Frank Fischer, CEO and CIO of the company, and Jens Große-Allermann, CEO and Co-CIO, spoke about the markets, sectors and individual shares.
Showing the way at HVB
„At Commerzbank, the downside is higher than the upside. And if it goes through, Unicredit knows how it's done in Germany, in order to get the minority shareholders out at below value,“ says Große-Allermann about the topic that is currently being discussed the most in Frankfurt. „They did that at HVB. They sold the main assets to themselves. And then, when valuing HVB, they said that we have cash from the sales, so we can only recognise the cash and the interest as the value. That worked wonderfully, and it is to be feared that they will do the same at Commerzbank.“
Equity markets
In general, the two investors view the current environment for equities as positive. „Falling interest rates will help us on the stock markets, especially in Europe,“ explains Fischer. „But there is a wide spread between the individual stocks, especially in the Dax.“ When assessing individual shares, Shareholder Value Management is guided by Warren Buffett's value approach, and looks closely at the individual stocks. The focus is also on opportunities in second-line stocks.
„You are always learning. Our investment approach has also changed,“ explains the Shareholder Value CIO. „We remain value investors and only invest with a margin of safety, but we look at the quality of a share much more than before. We call our approach Modern Value.“
Incidentally, Shareholder Value not only manages active funds, but has also launched a Modern Value ETF, which is very successful. This product has more than proved its worth, and the launch of further ETFs is possible. In addition, the company will change the Frankfurter Stiftungsfonds from a mixed fund to a pure equity fund.
No auto investments
„We are not invested in German auto stocks,“ says Fischer. „I am convinced that the future belongs to electromobility. But I can't see any German companies being among the winners.“ The technology sector, which continues to grow, is of interest. One big trend is „Move to Cloud“. There are several attractive tech stocks that are growing but are valued much lower than the Mag7. „In the software sector, we are invested in Oracle. For us, Oracle is the better SAP,“ says Fischer.
Oracle has been in the portfolio for a long time and the share has performed fantastically. „It is not just the quality of a product or service that is particularly important, but the corporate culture and the integrity and quality of the management,“ explains Große-Allermann. „Microsoft, for example, has become much more customer-centred in recent years. If SAP were to act in the same way, the share would perform even better.“ Microsoft used to be perceived rather negatively, but is now generally viewed positively, also by its customers. This is not always the case with SAP, so the company still has some potential to fulfill.
Largest position Storebrand
„We particularly like insurance and reinsurance companies. Our largest position in our Frankfurt equity fund for foundations is the Norwegian company Storebrand. But we are also invested in Allianz and Munich Re,“ Fischer reveals. „The balance sheets of Munich Re and Hannover Re are truly gold-plated, but you also pay a higher price for this quality than with other reinsurers such as the French company Scor, which we value highly.“
Overall, Shareholder Value Management has developed excellently in recent years, and the prospects are good. In addition to the fund management expertise, the success in sales also contribute to this. „We have a good team, a great team, who all live and breathe equities,“ says Große-Allermann.
„We are constantly exchanging ideas and discussing individual shares.“ adds CIO Fischer: „A life with shares is a privilege. It's fantastic when you can turn your passion, your hobby, into a profession. Humility towards the markets is very important. Because there are always surprises, both positive and negative.“
