Safety Investment Strategy
Minimizing Your Risk

If you want to be as safe as possible and keep your risk as low as possible, then you should follow our security strategy. You can expect your liquid and securely financed shares to lead to better returns, particularly in turbulent or volatile times. During a market downturn or recession, the security strategy often works best.

Even the security strategy is not 100% foolproof. However, the security strategy is based on key figures that verify the financial strength of a company, such as debt levels, liquidity and refinancing. The objective is to identify companies with a relatively high payment capacity or cash reserves. These will have the highest ranking at Obermatt in the rank of safety compared to their competitors.

Metrics of the safety strategy

Leverage

Defined as:

\[ \frac{Net \ Debt }{\ Equity} \]

We use net debt and equity at the end of the period.

Liquidity

Defined as:

\[ \frac{AC}{\ Net \ Debt} \]

We calculate net debt at the end of the period. The cash flow from operating activities is an average over a perceeding time period.

Refinancing

Defined as:

\[ \frac{NWC}{\ Equity} \]

We calculate net working capital (NWC) and equity at the end of the period.

NWC = Net working capital

AC = Average cash flow from operating activities

The Obermatt investment strategies at a glance