Neox analysis rank companies
Neox analyse 3.200 major listed companies in Europe and the US daily. Based on quality, price and movement, Neox creates a ranking list of 40 – 80 companies with value-for-money. The selections are aligned with the customer’s preferences and the customer’s portfolio is allocated.
A dynamic model
Persistently better than the stock market might seem like a bold statement. How can we be so accurate and confident in such high expectations? The figures show as much.
We have been working with the same model and fundamental idea since we started the development of our investment management model back in 2008. We do not let any feelings, concerns or optimism cloud our judgement in the selection process. We let computers, based on our models, analyse vast amaounts of fresh numbers every day.
The result will be our portfolios focusing on quality, at the right price and at the right buying opportunity.
Persistently better portfolios
Our holdings are significantly long-term. The expected life span for an investment is at least 5-6 years, often longer. Quality turns out to last over time and quality outperform the stock market in the long run.
Neox’s portfolios are based on three standard strategies; Europe, the Nordic countries and a mix of EU – US. On average, the portfolios contain 15 to 25 companies. According to our analysis this is the optimal portfolio size. If we were to expand the portfolios with more companies, the returns would be impacted.
The portfolios contain a wide range of industries. The focus is large companies to increase stability and facilitate trade. Based on the basic portfolios, you can customize your own portfolio at Neox. You choose industries, countries, opt in or out e.g. real estate, energy or in any way you want to prioritize your Neox portfolio.
A) Neox continuously notifies the customer or the client’s account manager of current allocations.
B) Each portfolio customer has their Neox portfolio in their custody account at their regular bank, on a dedicated custody account.
C) Neox is responsible for day-to-day supervision and evaluation of the companies included in the portfolio.
On your own account
Your portfolio is supervised by Neox directly on your own account, with your bank or broker. This means that you have full transparency, every day.
When allocations are made to the portfolio, you and your account manager/executing venue will receive a buy and sales list (Trade Ticket) and clear trade instructions. We change about 2 out of 20 companies per year.
Our personal and close service means that we offer our portfolio management service to customers who manage more than EUR 2,5 million.
For savers and investors with lesser investment needs, we offer other solutions.
Neox analysis and client relation
Neox A) analyse major listed companies in Europe and the US daily. Based on 282 parameters per company, Neox selects the best value companies based on quality, value (price) and movement (momentum).
Each customers’ B) Neox portfolio is adviced on their custody account in their bank of choice. Preferably on a sub custody account, where the portfolio can be evaluated continuously. Neox is responsible for the C) ongoing portfolio advice.
Neox three-step analysis
In our investment management process, we think a lot like the icon Warren Buffett, however, we work with computers. That allows us to analyze broader and deeper. Every day, hundreds of fundamental parameters for over a thousand companies are analysed. For each company, each parameter is judged in a unique way. In total, we analyse extensive amounts of data points daily.
Our first step is to search for quality. To qualify, companies must show sustained strong results. They shall have a majority of profitable years and belong to the leading companies in their respective industries.
The second step in the analysis is to review price i.e. valuation. We calculate a reasonable long term value for each unique company. If the value is favourable, then company can move to the next step into the final review where we establish the movement (momentum) index for each company.
The third step in our analysis is to find the movement factor for companies that have qualified in the previous analysis steps. These companies are analysed for momentum. A company can of course be promising and interesting, but without momentum they can continue to be undervalued for long periods of time.
Price and movement are included in the set of invest-able companies. We repeat the analysis of all companies in our coverage daily. In addition, every quarter we carry out a recalculation of the relationships in our models for each company to adapt our model to a changing reality.
Our portfolios show steady and strong return regardless of region, industry and time period.
In addition, we show particularly strong return when the stock market is weak. During such market situations the out-performance is slightly stronger than during surging markets.
The annualised return during the last 5 years range between 16% and 19% depending on strategy.