Investment manager reveals disregard for shareholders by managing negligible investments
Stefan Risse, a capital market expert at ACATIS, has expressed a keen interest in the current focus on small-cap stocks, deeming it a very interesting topic. Risse believes that small-cap stocks are historically undervalued compared to the broader market, making them an attractive investment opportunity.
Risse advises against buying small-cap stocks indiscriminately through a broad ETF. Instead, he suggests a selective approach to investing in small-cap stocks. This approach aligns with Risse's long-term oriented value investing approach, which emphasises thorough fundamental analysis, focusing on sustainable business models, strong management, and reasonable valuations.
In addition to free cash flow, Risse also considers Return on Capital Invest (ROCI) to be important when selecting stocks. He is known to pay attention to a company's market position and its growth rates compared to the industry. However, specific stock recommendations or explicit criteria from Risse or ACATIS in the small-cap segment were not available in the search data provided.
Risse is critical of earnings figures that can be misleading due to depreciation or amortization charges. He states that the fund always looks at net earnings to get a clearer picture of a company's financial health. Risse refers to Ebitda as "bullshit earnings," a term also used by Charlie Munger.
Despite not providing specific stock recommendations, ACATIS has identified some interesting small-cap stocks with good business models and lower prices. For those seeking detailed and up-to-date stock recommendations or selection criteria from Stefan Riße or ACATIS, checking their official publications, fund reports, or direct interviews may provide more comprehensive answers.
It is essential to note that investing in the stock market carries risks, and small-cap stocks are generally considered riskier than larger, more established companies. Therefore, potential investors should conduct their own research and consult with a financial advisor before making any investment decisions.
Stefan Risse underscores the importance of a selective approach when investing in small-cap stocks, leaning towards value investing that involves fundamental analysis, focusing on sustainable business models, strong management, and reasonable valuations. Moreover, Risse considers Return on Capital Invest (ROCI) and free cash flow essential factors when choosing stocks, and he is wary of earnings figures that may be misleading due to depreciation or amortization charges.
