Our business is to invest the capital that our clients trust to our care in order to preserve it and to grow it over the long term by a rate consistently and significantly outperforming the asset classes in which we invest. We strive to keep our clients' costs to a minimum
Merk Investments currently advises clients on the following primary investment strategies: US Growth, US and European Value, Gold, US and European Cash.
The US Growth Strategy invests in industries and companies selected on a fundamental basis, whereas technical and cyclical analysis are used to time investments. Market exposure is primarily managed through cash and margin holdings. Most investments are long-term, but short term (securities sold within one year) purchases and trading (securities sold within 30 days) may occur. The overall asset turnover is very low.
The Value Strategies invest long-term in select large companies (typically part of the predominant index) of a country aiming to outperform the respective index. The US Value Strategy invests in US companies, whereas the European Value Strategy focuses on European companies. Although investing in companies that are more conservatively valued than other stocks in the index, returns and volatility can be significant due to the focus on only select companies. By limiting investments to ?blue chip stocks? that are out of favor, we aim to reap the benefits of concentrating on only select stocks while reducing the risk created by the lack of diversification in the number of stocks held. Each individual company held is likely to be a diversified company active in more than one industry. The strategy employs no hedging or leveraging.
The Gold Strategy exposes a client account to the price of gold and adds valuable diversification to a portfolio. Aside from its current popularity due to increased geopolitical risks, gold is a "neutral" currency that should benefit from devaluation tendencies of the US and other countries. Gold reserves no longer have steep declines in Western countires; conversely, China is likely to build larger gold reserves. Please read our publications and contact us for a broader discussion on whether and why you may want to add gold to your portfolio.
The US Cash Strategy focuses on the US corporate and government debt markets. Similarly, the European Cash Strategy focuses on the European debt markets. We compose, monitor and manage a portfolio for you based on your specific requirements. We typically hold bonds until maturity to eliminate losses due to falling bond prices. The goal is to have higher returns than in a money market fund or term deposit, but avoid the pitfalls of bond funds in an environment with potentially rising interest rates. Based on knowledge of your specific requirements, we can tailor the portfolio with appropriate maturities for you. We evaluate and monitor bonds and will only invest in issuers and maturities that we deem appropriate for you.
At times like these, when more than one market is experiencing unparalleled uncertainties, our principles prove particularly valuable: sustainable wealth is built over the long term, with superior insights, clear focus and commitment.
