1Settimana·

Quantex Global Value

Can active management make sense?


Actively managed funds are such a thing, most do not beat their benchmark after costs. In addition, 95% of the return can be derived from the Fama-French 5-factor model.


If we define manager skill as the ability to exploit one or more of these factors better than the average investor, then it can make sense to buy into such management.


Is the Quantex team worth the money?


3.00 % front-end load

1.14 % management fee

1.50 % Ongoing charges


This has to be earned first.


The real problem is not that there are no above-average investors, but that they are only recognized after they have performed above average.


Whether it is easier to find good management or to learn the whole thing yourself probably differs greatly from person to person.


Here are a few points that, in my opinion, strongly suggest that Peter Frech and the Quantex team will be able to achieve above-average returns in the future:


1. outperformance despite headwinds


Since the fund was launched in 2008, market performance has been dominated by fast-growing tech companies and mega caps.


The MSCI World Value $IWVL (-4,79%) compared to the MSCI World $IWDA (-3,89%) has only generated just over half the return since its launch in 2014.

During this time, many value funds have been closed due to investor flight and minimum returns; the Quantex Global Value $SLCH6Z / $QGVU has not only beaten its benchmark (Bloomberg World Net Return) in the same period. It also outperformed the MSCI World.

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2. professionals and not clowns


Quantex does not need to jump around on Instamm or be a guest twice a month on every financial YouTube channel in the DACH region.

It is primarily concerned with the funds and not with marketing.


3. profitable bears


Despite the outstanding performance, the fund management is extremely bearish. The risks are always seen first and acquisitions are usually made at such low prices that there is also a margin of safety.

Anti-cyclical companies from sectors and countries that have been overlooked or unjustly punished by the market are bought.

This strategy, based on the early Warren Buffett, has been implemented in a disciplined manner for almost 17 years now.


4. know your limits


Due to its success, the fund has reached a size at which it is capital constrained. The fund would have become too large to implement the desired strategy.

The same thing happened to Warren Buffett, who was no longer able to implement his value strategy uncompromisingly, as a result of which the returns also became lower.


To prevent this from happening to Quantex Global Value, a freeze on the issue of new units has been in place since November 2022.


In other words, the interests of investors have been placed above maximizing the company's own profits.


Nevertheless, it is still possible to invest in the fund: If fund units are redeemed or sold, subscriptions are possible to the same extent. All subscriptions are processed on a first come, first served basis. There are no partial executions and individual subscriptions are either accepted in full or rejected.

rejected.


Just have a look at the Swiss Exchange (SIX), you will usually still find some there.


On the https://www.quantex.ch/ next to the stormtroopers you can also see the available shares. 😅

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Criticism:


What I would also like to mention is that this fund is not for people for whom ESG criteria are important. Quantex invests completely amorally.

The portfolio is (as of today) heavily overweighted in fossil fuels, tobacco, alcohol and mining (i.e. the wet dream of @TaxesAreTheft )


You can never rule out the possibility that the management was simply lucky and the returns are worse going forward, which is why such a fund can only ever be an addition.


Conclusion:


In my opinion, the Quanex team has proven over the past 17 years that it is able to find undervalued stocks, sell them at fair value and do so at a similar risk to the market as a whole.

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The counter-cyclical nature of the strategy makes the fund an excellent addition to portfolios that are dominated by world ETFs or have similar sectors and country weightings to them.


https://www.quantex.ch/de/anlagefonds/quantex-global-value-fund/chf-r/


If you want to get a first impression of the management, I recommend the webinar recordings and investor letters on the Quantex website.


https://www.quantex.ch/de/aktuell/

https://www.quantex.ch/de/quantex-werte/

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17 Commenti

immagine del profilo
How cool, that's really what my dreams are made of. I just had a quick look and apparently it's even available for saving at scalable.
3
immagine del profilo
@TaxesAreTheft I have just converted my scalable depot and the thing is now being saved
immagine del profilo
@TaxesAreTheft... don't you want to take a look at the website first and at least sleep on it for a night? 😅
immagine del profilo
@TotallyLost nope, the scalable depot is just for fun anyway, has nothing to do with my main depot. I have 3 portfolios: ING (my main portfolio), TR (income & trading) and Scalable
1
immagine del profilo
@TaxesAreTheft I'm surprised that they have a closed fund as a savings plan... so don't be surprised if it's not executed because there are no shares. 😅
immagine del profilo
@TotallyLost is $QGVE, I was also very surprised. I know most of the positions, so I don't have to think about it too much. I would have liked to have seen prisons and uranium in the fund. But you can't have everything, so I'm probably out for value reasons at the moment.
1
immagine del profilo
@TaxesAreTheft When I bought them, there were no shares on LS-Exchange, which is why I have the CHF and not the Euro version.

But it's cool that there are a few shares on a German exchange again.
1
immagine del profilo
@TaxesAreTheft Did you really buy shares in SC or just put in a savings plan?
immagine del profilo
@Thesaurus bought one and the rest is a savings plan, the portfolio is quite small and I don't want to break the weighting
immagine del profilo
@TaxesAreTheft okay strong. I read through the factsheet and it said that the fund is not suitable for savings plans and that you can only buy whole units. If I go to Scalable now, it is also not possible to buy shares (I think it only works until 12:00 noon).
1
immagine del profilo
@Thesaurus the savings plan will be executed on April 4th. I'll keep you up to date
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immagine del profilo
1Settimana
Question: can't the outperformance of the fund simply be explained by the strength of the CHF?
1
immagine del profilo
@Epi? the fund currency has almost no influence on the performance.

An MSCI World EUR and an MSCI World CHF have the same performance 😅, in euros... (as long as this is not headged)
It is just important that you convert both to the same currency.

They don't hold 80% cash but buy international equities.

In addition, their benchmark is the Bloomberg World Net Return Index in CHF and they have also pulverized it:
https://www.quantex.ch/de/anlagefonds/quantex-global-value-fund/chf-r/
2
immagine del profilo
Very interesting. Could actually become a building block for my multifactor strategy. Thanks for the contribution ❤️🙏.
1
immagine del profilo
@Thesaurus How is your portfolio structured?
immagine del profilo
@TotallyLost $XDEM as core, BTC, gold and a few high quality stocks in my opinion (I should not become a portfolio manager)
1
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