Performance Review
The portfolio returned 0.7% in January 2026. The long-term objective is to compound capital at approximately 7–8% annualized over a full cycle, while limiting drawdowns to a level that allows disciplined decision-making during periods of stress.
Top contributors / detractors during the month:
Contributors: Gold, Global Equities (Vanguard FTSE All-World), Colgate-Palmolive
Detractors: Berkshire Hathaway, Christian Dior, Nestlé
Asset Allocation
Commentary
The portfolio ended the month with an allocation of 68% equities and 32% diversifying strategies. Two new positions were added in January.
AQR Apex Fund
A position in the AQR Apex UCITS Fund, managed by AQR Capital Management, was established. Apex is AQR’s multi-strategy vehicle combining different return streams such as global macro, equity long/short or corporate arbitrage. The strategy seeks to deliver equity-like returns over the long term with a low correlation to traditional markets. Historically, Apex has performed quite well cross various environments. In EUR the strategy delivered a CAGR of 9.43% since November 2018 which is roughly 2% lower than global equity indices. Over the last 5 years, the strategy has outperformed global equity indices.
The strategy is certainly not one with the lowest volatility, but I am satisfied with the expected returns and believe it is a great diversifier for the portfolio. The position may be increased over time. Within the hedge fund allocation, it represents my highest conviction position.
Deutsche Boerse
A position was also initiated in Deutsche Boerse AG. This is arguably the most vertically integrated European market infrastructure provider. The group combines trading venues, clearing, custody, fund services, data, and investment software within a single ecosystem:
Investment Management Solutions (IMS)
Deutsche Boerse provides mission-critical front-to-back software (SimCorp), portfolio analytics (Axioma), ESG research and governance services (ISS), and index products including the STOXX and DAX families.
Trading & Clearing
Operates key platforms such as Eurex (financial derivatives), EEX (energy and commodities), 360T (FX trading), and Xetra (cash equities and ETFs).
Clearstream
Provides custody, settlement, collateral management, and fund processing services globally. A potential acquisition of Allfunds will further strengthen its position in fund distribution and deepen its integration.
My investment case rests on three main pillars:
The growing strategic importance of financial market infrastructure and (good) data.
Increasing European policy focus on capital market development and pension reforms. Both, German chancellor Friedrich Merz and Ursula von der Leyen, have recently highlighted the importance in speeches. I see Deutsche Boerse as the main beneficiary as it is the most integrated player in this field in Europe.
A gradual shift toward higher recurring revenue through data, software, and services.
Positioning
I have certain legacy holdings in the portfolio, accumulated over years, that currently are above the target weight I have in mind. Within the equity sleeve consumer staples exposure is elevated. High-conviction holdings such as Deutsche Boerse and Visa are below my desired strategic weights.
Gold has experienced a strong advance over recent months. Should the position increase its relative weight any further I may consider to trim the exposure and put the money to work elsewhere. My exposure to catastrophe bonds has grown as well over the past years. This particular asset class benefited from higher interest rates, and reduced capital inflows following repricing as fixed income with similar risk and return characteristics became more attractive again. Should interest rates decline again, capital inflows may increase and premiums may compress. The current position size of over 11% exceeds my original intentions, and I am considering a partial reduction (probably in favor of AQR Apex).
Thank you very much for reading. Subscribers will receive further updates and research as the portfolio evolves.
This publication is for informational purposes only and does not constitute investment advice or an offer to buy or sell any security. Past performance is not indicative of future results.