In­vest­ment phi­lo­so­phy

Palomar Asset Ma­nage­ment pursues a long-term, con­ser­va­ti­ve in­vest­ment stra­te­gy. For reasons of cost and trans­pa­ren­cy, we avoid struc­tu­red pro­ducts. Pre­ser­ving a real equity base is fun­da­men­tal to our ap­proach.
We believe in “value in­ve­sting” and view di­ver­si­fi­ca­ti­on as in­dis­pensa­ble, when viewed in terms of risk.

Investment committee

At regular in­ter­vals Palomar Asset Ma­nage­ment’s in­vest­ment com­mit­tee as­ses­ses the fi­nan­ci­al market using macro-eco­no­mic ana­ly­ses in order to define its stra­te­gic and tac­tical asset alloca­ti­on pro­gram­me.

Selecting securities

We attach great im­port­an­ce to choo­sing the right se­cu­ri­ties to drive per­for­mance. The in­vest­ment com­mit­tee bases its de­ci­si­ons on in­ten­si­ve re­se­arch.


In the area of fixed-in­te­rest in­vest­ments we focus on:

  • the issuer’s risk/credit rating (default risk)
  • du­ra­ti­on ana­ly­sis (in­te­rest risk)
  • ana­ly­sis of yield en­vi­ron­ment and ex­pec­ta­ti­ons with regard to in­fla­ti­on


In selec­ting shares, we take a long-term, value-ori­en­ted view, li­mit­ing in­di­vi­du­al in­vest­ments to de­ve­lo­ped regions with markets that are trans­pa­rent, liquid and re­gu­la­ted. In­vest­ments de­via­ting from this norm are made through di­ver­si­fied funds or ideally through indexed pro­ducts.
Our stock-market ana­ly­ses are based on:

  • a fun­da­men­tal as­sess­ment of the re­le­vant company, current market price and busi­ness pro­s­pects
  • market po­si­ti­on, pro­ducts, and ma­nage­ment
  • fi­nan­ci­al ar­ran­ge­ments and balance-sheet quality

Money-market in­stru­ments
As well as looking at any risk in­vol­ved, we also take account of how li­qui­di­ty risk is as­ses­sed in all market si­tua­ti­ons, com­pa­ring this cri­ti­cal­ly with yields offered.

Portfolio structure

How a port­fo­lio is struc­tu­red is de­ter­mi­ned ac­cord­ing to client spe­ci­fi­ca­ti­ons (risk ca­pa­ci­ty, risk pro­pen­si­ty, ex­pec­ted yield) as well as with our in­ter­nal risk gui­de­li­nes. In ad­di­ti­on, the pro­fes­sio­nal ethics of the As­so­cia­ti­on of Swiss Asset Ma­na­gers apply.


We take a core/sa­tel­li­te ap­proach to in­di­vi­du­al in­vest­ment stra­te­gies. This com­pri­ses a long-term, con­ser­va­ti­ve core port­fo­lio, sup­ple­men­ted, where ap­pro­pria­te, by special ‘sa­tel­li­te’ themes or markets as these present them­sel­ves within the current macro-eco­no­mic en­vi­ron­ment.

Risk control

Regular as­sess­ment of in­di­vi­du­al po­si­ti­ons ensures that the port­fo­lio always remains within the gui­de­li­nes agreed.

Investment process