Investment philosophy

ACATIS Small Diamonds invests worldwide in attractively valued companies that generate profits on an ongoing basis and reinvest them in order to continuously increase their own enterprise value in the interests of shareholders over a longer period of time and with an attractive return on capital. Such companies are also known as compounders. They often have a proven long-term business model in traditional sectors, solid fundamental data and good corporate governance. The selection and weighting of stocks in the portfolio is based on the principles of value investing. This means that we specifically look for shares whose valuation, combined with a continuation of the previous increase in company value, enables an attractive return.  These shares are generally found outside the major share indices with significantly less public attention and market capitalisation, which is why smaller, inconspicuous companies (small and mid caps) form the focus of the portfolio. The portfolio management takes a multi-stage bottom-up approach to the composition of the portfolio and compiles the companies into a balanced, generally fully invested portfolio of around 40 to 60 shares without high individual weightings, irrespective of the benchmark. At least 51% of the fund is made up of shares in companies with a market capitalisation of up to € 5 billion.