Investment succcess using two strategies in two variations

The GAMAG stra­te­gies enab­le inves­tors to use a broad mix of dif­fe­rent alpha stra­te­gies to build their nest egg. They are rely­ing hea­vi­ly on alter­na­ti­ve invest­ment approa­ches to achie­ve a pro­tec­ted way of buil­ding one´s future.

GAMAG Black+White Ltd. invests in a mix of what we call inte­rest repla­ce­ment stra­te­gies. In today´s zero inte­rest envi­ron­ment the­re are still ways to achie­ve somehow con­ti­nuous cash flows. Instru­ments GAMAG Black+White Ltd. is using are e.g. con­trac­ts based on com­mer­ci­al real esta­te rent port­fo­li­os or ener­gy hedge stra­te­gies, whe­re the inves­tor buys oil or gas in the ground, sells the future pro­duc­tion in the futures mar­kets, and nets the spread bet­ween pro­duc­tion costs and the for­ward sale pri­ce. GAMAG Black+White Ltd. is com­bi­ning the­se yield bea­ring stra­te­gies with liquid hedge stra­te­gies on the exchan­ge mar­kets like long/short equi­ty, rela­ti­ve value or dis­tres­sed stra­te­gies, whe­re a name is bought at deeply dis­coun­ted pri­ces so that even in the event of bankrupt­cy a posi­ti­ve eco­no­mic result for the inves­tor is high­ly pro­bable.

GAMAG Vola + Value is employ­ing a broad mix of opti­on stra­te­gies. Core invest­ments are short opti­on posi­ti­ons with the inten­ti­on to buy a stock a deeply dis­coun­ted pri­ces in a high vola­ti­li­ty envi­ron­ment. Long opti­on posi­ti­ons with the inten­ti­on to rea­li­ze spread pro­fits or hedge the port­fo­lio against cras­hes com­ple­te the approach. Fur­ther invest­ment stra­te­gies tra­ding vola­ti­li­ty its­elf enab­le the com­pa­ny to par­ti­ci­pa­te from the results of a total­ly dif­fe­rent asset class with inte­res­ting invest­ment cha­rac­te­ris­tics.

Vola+Value is per­forming bet­ter in side­ways´ mar­kets or if mark­tets are cal­ming down. A mix of both stra­te­gies (Black+White and Vola+Value) has the poten­ti­al to fur­ther redu­ce over­all port­fo­lio vola­ti­li­ty achie­ving returns with low or even nega­ti­ve cor­re­la­ti­on to the stock mar­kets. Ger­man Asset Mana­gers AG, Frank­furt is the issu­er of the GAMAG cer­ti­fi­ca­tes, index-lin­ked notes based on the GAMAG per­for­mance indi­ces which mea­su­re the inde­pendent­ly cal­cu­la­ted per­for­mance of both stra­te­gies.

Ger­man Asset Mana­gers AG, Frank­furt issu­es two series for each of the two stra­te­gies:
The GAMAG Mas­ter cer­ti­fi­ca­tes – phy­si­cal paper issu­es regis­te­red in the name of the inves­tor and thus 100% pro­tec­ted against theft sent to the investor´s domici­le. The­se cer­ti­fi­ca­tes thus are trans­fera­ble wit­hout the nec­ces­si­ty of a bank and need no depo­sito­ry or bro­ker acount eit­her.

Exchan­ge-listed Mini-Cer­ti­fi­ca­tes are the more tra­di­tio­nal issu­es which can be bought and sold with bro­kers and uni­ver­sal banks and deli­ve­r­ed into a secu­ri­ties acount at a depo­sito­ry insti­tu­ti­on. The­se are trad­able at Frank­furt stock exchan­ge.

Finding your individual asset allocation

Obvious­ly we have some ide­as, which of our sta­te­gies are a bet­ter match for dif­fe­rent pur­po­ses even though not­hing is cer­tain in inves­ting. But this in turn lea­ves broad space for your own thoughts and per­so­nal touch.

Achieving entrepreneurial yields

As an entre­pre­neur you are thin­king long­term. You are buy­ing GAMAG Mas­ter cer­ti­fi­ca­tes to achie­ve cost advan­ta­ges. GAMAG Black+White has the more aggres­si­ve risk return pro­fi­le. You would want to over­weight this stra­te­gy pos­si­b­ly. A 2:1 mix of Black+White and Vola+Value would be an idea.

Protection and growth for your nest egg

If after inves­ting for some time you are begin­ning to live by the returns of your nest egg you are pos­si­b­ly loo­king for some smoot­her returns. Becau­se of the lon­ger invest­ment hori­zon you choo­se to pro­fit from the cost advan­ta­ges of the GAMAG Mas­ter cer­ti­fi­ca­tes. Com­ing clo­ser to the ear­nout pha­se you should think about maxi­mum diver­si­fi­ca­ti­on of your invest­ments. An equal 50:50 mix of Black+White and Vola+Value com­bi­nes two stra­te­gies with dif­fe­rent cha­rac­te­ris­tics.

Protected gains from alpha trading

You like to deci­de by yours­elf. You are loo­king for the fle­xi­bi­li­ty to pro­fit from dif­fe­rent mar­ket con­di­ti­ons. Our two uni­que stra­te­gies enab­le you to achie­ve real yields in a low yield envi­ron­ment or to use vola­ti­li­ty based stra­te­gies pos­si­b­ly pro­fi­t­ing when nobo­dy using tra­di­tio­nal tra­ding does.

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Detlef Weismantel Customer Marketing Director