Private Wealth Management Summit September 2019
Cédric Jacque
Portfolio Manager and Managing Partner | Mensarius AG
Speaker Presentation
Market Volatility – The Impact of Changing Market Forces on Investments
Volatility can offer opportunity. Ownership titles continue to change hands on a daily basis at volatile prices. Yet these market gyrations have only a slight relationship to company values.
As a value investor, we believe risk should be the centrepiece of any investment process. Investors should think of risk as something to be guarded against, as opposed to the speculators’ view that risk is an opportunity. To us, volatility does not properly capture the risk investors run. Permanent loss of capital on each investment decision does.
Consistent superior investment performance over the long run is only possible if principal losses on an investment-by-investment basis are avoided. We believe such results can only be obtained by a conservative assessment of an asset’s fair value through systematic analysis, and by the purchase of that asset at a price that provides a margin of safety.
A company’s fair value is a function of the earning power it can sustain over a long-time horizon. By nature, it is relatively stable, and in fact much less volatile than its stock price. Yet while volatility may be unpleasant to endure in the short run, it can provide an opportunity to generate safe absolute returns over the long term.
Speaker Bio
Cédric Jacque is a Managing Partner and Portfolio Manager at Mensarius. He is responsible for the firm’s investment strategy and management of the investment team. Cédric joined Mensarius in 2011 and became a Partner in the firm in 2016. Cédric joined as an Analyst, was promoted to Senior Research Analyst, became Portfolio Manager in 2017 and Managing Partner in 2019. Prior to Mensarius, Cédric served as Senior Auditor at KPMG in Luxembourg from 2008 to 2011.
Cédric earned his Master of Science degree in Finance from the University of Nancy II in 2006. He is a CFA charter holder, and serves as one of the founders of the CFA Value Investing Network (VIN) in Switzerland.
Speaker Presentation
Market Volatility – The Impact of Changing Market Forces on Investments
Volatility can offer opportunity. Ownership titles continue to change hands on a daily basis at volatile prices. Yet these market gyrations have only a slight relationship to company values.
As a value investor, we believe risk should be the centrepiece of any investment process. Investors should think of risk as something to be guarded against, as opposed to the speculators’ view that risk is an opportunity. To us, volatility does not properly capture the risk investors run. Permanent loss of capital on each investment decision does.
Consistent superior investment performance over the long run is only possible if principal losses on an investment-by-investment basis are avoided. We believe such results can only be obtained by a conservative assessment of an asset’s fair value through systematic analysis, and by the purchase of that asset at a price that provides a margin of safety.
A company’s fair value is a function of the earning power it can sustain over a long-time horizon. By nature, it is relatively stable, and in fact much less volatile than its stock price. Yet while volatility may be unpleasant to endure in the short run, it can provide an opportunity to generate safe absolute returns over the long term.
Speaker Bio
Cédric Jacque is a Managing Partner and Portfolio Manager at Mensarius. He is responsible for the firm’s investment strategy and management of the investment team. Cédric joined Mensarius in 2011 and became a Partner in the firm in 2016. Cédric joined as an Analyst, was promoted to Senior Research Analyst, became Portfolio Manager in 2017 and Managing Partner in 2019. Prior to Mensarius, Cédric served as Senior Auditor at KPMG in Luxembourg from 2008 to 2011.
Cédric earned his Master of Science degree in Finance from the University of Nancy II in 2006. He is a CFA charter holder, and serves as one of the founders of the CFA Value Investing Network (VIN) in Switzerland.