FPS Vermögensverwaltung GmbH

Overview

Established in 1987, FPS Vermögensverwaltung GmbH is an independent asset management firm headquartered in Heidelberg, Germany. The firm focuses on providing tailored investment solutions for both institutional and private clients, emphasizing a value-oriented investment approach. Their investment philosophy centers on fundamental analysis, particularly of German equities, employing an all-cap strategy to identify undervalued companies and market inefficiencies. Currently, the firm concentrates on German small and mid-cap stocks due to their attractive valuations. FPS employs an active, bottom-up investment strategy, constructing portfolios that include long-term equity holdings alongside sufficient liquidity to capitalize on short-term opportunities. The portfolios are intentionally concentrated yet diversified, with weightings based on price potential and conviction rather than market capitalization. The firm does not benchmark its portfolios against any indices, constructing them independently of comparison benchmarks. While ESG factors are not a selection criterion in their investment process, FPS acknowledges that responsible resource use and transparent structures are essential for sustainable success. They believe that companies with improvable processes can present attractive opportunities through optimization. The firm's investment approach is structured into four segments: undervalued classic industrial holdings, which form the diversified core portfolio and contribute the most to performance; substance values, which are weighted at less than 10% and provide stability; special situations like takeovers or squeeze-outs, making up about 5% and serving to dampen volatility; and turnarounds, offering an above-average risk-return profile. Individual positions are reduced when they reach a weighting of around 8%, aiming for a balanced portfolio without concentration risks. New positions are built up gradually, and during crises, the valuation safety margin protects, and contrarian actions utilize correction phases. FPS has learned from past crises to focus on balance sheet quality, liquidity, and stable cash flows to avoid value traps.

Investment Focus

• Focus on undervalued companies with strong fundamentals
• Preference for German small and mid-cap stocks
• Active, bottom-up investment strategy
• Long-term investment horizon
• Diversified portfolio construction
• Independent of benchmark indices
• Emphasis on value-oriented investments
• Willingness to invest in special situations and turnarounds
• Interest in companies with potential for optimization and improvement
• Commitment to responsible resource use and transparent structures
• Focus on balance sheet quality, liquidity, and stable cash flows
• Avoidance of value traps
• Opportunistic investment approach
• Ability to capitalize on short-term market inefficiencies
• Preference for investments with attractive valuations
• Interest in both growth and stability in portfolio construction
• Willingness to invest in various sectors and industries
• Alignment with FPS's investment philosophy and values

Portfolio Companies