Performance - Transparency - Liquidity


White Papers

The investment strategy of CFG consists of four elements: The first element is the choice of an underlying such as the DAX, the CAC, the FTSE or any other set of highly liquid standard stocks. The second element of CFG investment strategy is timing, i.e. the determination, whether the underlying and its component stocks are assumed to be in the state of either a bull or a bear or a transitional (from bear to bull) market. This is explained in the White Paper Methods and Rules for Timing in Stock Markets.

The third element of CFG investment strategy is selection of individual stocks from the chosen underlying during bull markets. Different performance criteria for stock selection and weights for the stocks are discussed in the White Paper Measures and Methods for Portfolio Selection. The fourth element of CFG investment strategy is the combination of timing and portfolio selection. If the market of the underlying is assumed to be bullish, individual stocks are selected. If a bear market is assumed, CFG invests either only in a money market or goes short with a predefined part of the capital. If a transitional market from bear to bull is assumed, CFG goes long using a simple ETF certificate that represents the underlying. Details and results are shown in the White Paper Investment Strategy of CFG Financial Engineering.