Investment specialist Ufuk Boydak predicts potential annual market surge
In the ever-changing world of investments, two funds stand out for their steadfast commitment to quality and long-term growth - the Loys Global and Loys Aktien Europa funds. Since 2014, Ufuk Boydak has been managing the Loys Aktien Europa fund, while since 2015, he has been co-managing the 215 million euro Loys Global fund with Christoph Bruns.
Both funds employ an investment philosophy centered on high-quality, durable businesses with strong competitive advantages. They focus on fundamental, bottom-up stock selection and avoid short-term market timing. The portfolio only includes companies that can easily meet their debt obligations even at higher interest rates.
The Loys funds are known for a concentrated portfolio approach, selecting a smaller number of high conviction ideas rather than broad diversification. They prioritize companies with resilient financials, strong cultures, and sustainable business models, often looking for firms with intangible competitive advantages similar to the famous investment approach of Warren Buffett.
Ufuk Boydak, who joined Loys investment boutique in 2009 as an analyst, considers the current phase to be very challenging, but optimistic about the future. Despite the market turbulence, the funds continue to seek out structurally healthy companies like Atea, a Norwegian IT service provider, which generates consistently high cash flows and grows, despite high inflation rates.
One such acquisition is the US oil services company Schlumberger, which has been included in both funds' portfolios, despite initial falls in the prices of some values after entry. The fund managers are confident that the undervaluations will resolve, and the prices of their new acquisitions will rise above the entry price.
The Loys Global fund has lost around 15 percent since the beginning of the year, but Ufuk Boydak believes it can catch up and experience a year-end rally. The poor fund rating of Loys Global is due to the long-time unsuccessful value strategy, but the investment style now promises return opportunities.
In times of market turbulence, it may be advantageous to buy stocks when the sum of market participants is pessimistic, as the long-term picture should be kept in mind and rational decisions made at the stock exchange. Investors are waiting for clear indications that the US inflation rate for July has peaked. In many countries, consumers are reducing their consumption due to inflation and higher borrowing costs.
The Loys investment boutique is currently considering very attractively priced companies within the Eurozone that meet their long-term investment criteria. While the worst-case scenario for the economy is a prolonged period of stagflation - persistent high prices with little or no growth - the Loys funds remain optimistic about the future, focusing on quality companies that can grow sustainably over time.
The Loys Global and Loys Aktien Europa funds focus on investing in high-quality, durable businesses with strong competitive advantages, employing an investment philosophy similar to Warren Buffett's famous approach. Despite temporary market fluctuations, such as the current 15% loss by the Loys Global fund since the beginning of the year, the funds continue seeking out structurally healthy companies for long-term growth, like Atea and Schlumberger.
Ufuk Boydak, manager of the Loys Aktien Europa fund and co-manager of the Loys Global fund, remains optimistic about the future and sees potential for a year-end rally for the Loys Global fund. The funds prioritize companies with resilient financials, strong cultures, and sustainable business models, even during times of market turbulence, when it may be advantageous to buy stocks at lower prices and focus on quality companies for long-term growth.
