The risk premiums on financial markets form the most sustainable of all possible sources of return for investors. Because the investment return attainable for the acceptance of systematic risks is based not on the temporary market inefficiencies but on the central economic mechanisms of the risk transformation on financial markets.
However, the size of financial market risk premiums is time-varying. It varies with the degree of risk aversion of the investors and is thereby an expression of the tendencies and expectations "traded" in the market. Active investment strategies for adjusting to these cyclical fluctuations of the risk premiums are suitable for the systematic achievement of absolutely positive returns.
Our economic models capture the time-varying risk premiums in equity, bond, and commodity markets as well as for the asset class volatility with high accuracy. The investment objective Absolute Return is realised by an active and dynamic management of one or more risk premiums simultaneously on the basis of our investment funds.