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We believe in the integration of fundamental with technical analysis, where we select industries and companies based on fundamental analysis building on our own research, and apply technical analysis to time investments.
We use both Macro-Economic and intra-Sector analysis to target select sectors, and then monitor the dynamics of fundamentals and share prices among competitors to aid in the selection of companies within a sector. Among others, we search for growth companies and turnaround situations.
We also integrate investment analysis over different time horizons: while securities are targeted primarily for long-term investments, we adjust our exposure for medium-term or short-term expectations. Only rarely do we engage in intra-day trading. All of these factors contribute to our low investment turnover, which is the major contributor to a favorable tax treatment of your capital gains.
Our market exposure management is influenced by our proprietary market timing research (both qualitative and quantitative), as well as by other market timers’ research.
Merk Investments believes that prices reflect the current consensus estimate of the future performance of the underlying securities. Consequently, price movements are only secondarily bound to the current value of the security: primarily, price movements are dependent on changes in expectations. Changes in expectations affect companies differently depending, among others, on their cost of capital and perceived predictability of future cash flows. When Merk Investments LLC encounters securities whose prices reflect expectations it disagrees with, the firm attempts to understand why the market prices reflect them in this manner, and whether those conditions are likely to be sustained.
We consider computers a valuable aid for processing and analyzing information, but they can never replace human decision makers for long term investment decisions. All of our investment decisions of Merk Investments are undertaken under Mr. Merk’s personal supervision. To emphasize his commitment to capital preservation and growth, Mr. Merk and this firm invest a significant portion of his personal assets according to the same strategies as we recommend to our clients.
Should you wish to know more about the products and services we provide, please contact us directly.
