Anyone who has ever experienced for themselves how quickly stock markets can turn – from euphoria to uncertainty within a few weeks – knows how valuable active management can be.
When prices fall, you ask yourself: Should I have reacted faster? When new trends emerge, you think: Am I still in the right position? This is where an active approach comes in: It’s about not just watching, but steering with well-founded decisions. What counts here is not a gut feeling, but experience, an understanding of the market and a clear strategy.
Why do we consistently rely on active portfolio management?
Many of our clients have neither the time nor the desire to deal with investments on a daily basis – they expect forward-looking portfolio management that recognizes opportunities, manages risks and makes decisions professionally. For us, active management means more than just responsibility: we invest alongside our own family assets. This common interest shapes our actions – in every market phase.
But what exactly does that mean – active management? And why do we think this approach is essential, especially in times when passive products are booming?
Find out below what active asset management is all about, what strengths it offers – and how it helps to manage assets in a targeted, flexible and future-oriented manner.
What is active asset management?
Active management means that investment decisions are made actively in order to exploit opportunities and minimize risks. In contrast to passive investing, which merely tracks an index, an active investment approach aims to analyze and react to the market in a targeted manner. The focus is not only on returns, but also on protection against losses and flexibility in the event of market developments.
Why does active portfolio management make sense?
Active portfolio management makes it possible to react to market changes in a targeted manner and achieve above-average returns. Market conditions are constantly changing. Active management allows you to recognize developments at an early stage and adjust your portfolio accordingly. An active approach proves particularly effective in volatile phases:
- Trends are identified and utilized at an early stage
- Obsolete index weightings are avoided
- Risk can be managed in a targeted manner
What are the advantages of active asset management?
Active asset management combines strategic thinking with flexible implementation and thus offers greater adaptability. It is based on detailed analysis, long-term planning and risk-conscious management:
- Investments in quality stocks with sustainable potential
- Consideration of market cycles and industry rotations
- Exploiting asymmetric opportunities through targeted stock selection
- Option to hedge in times of crisis
How does active portfolio management take advantage of current market changes?
Active management offers the opportunity not only to react to markets, but also to stay one step ahead of them. The decisive factor here is how opportunities are recognized and risks are actively addressed.
| Challenge | Active response |
| Trend change in the market | Early identification and targeted reallocation |
| Overweighting of outdated sectors | Avoidance through flexible allocation |
| Increasing volatility | Targeted risk management |
How does active management identify future winners?
Through market observation and analysis, active management recognizes companies with sustainable growth potential. “Is this company part of a sustainable trend – or just a short-term hype phenomenon?” Active asset management asks itself precisely these questions on a daily basis. Actively managed strategies are not based on past successes, but on future opportunities. This means
- Industry and regional rotation are actively supported
- Hypes are critically scrutinized
- Focus on substance and sustainability
How is long-term stability achieved through active management?
Active investment strategies are based on convictions and a clear focus on quality. Even in fluctuating markets, solid companies remain successful in the long term. It…
- … relies on proven business models
- … remains invested even in times of crisis
- … pursues an overriding investment objective with perseverance
How does active management take economic cycles into account?
Cyclical effects are actively integrated into the portfolio orientation, as they play a central role in the strategic portfolio orientation. Active management analyzes which phase the economy is currently in and makes targeted investment decisions on this basis. In economic upswings, growth sectors such as consumer goods or industry are weighted more heavily, as they make an above-average contribution to value creation in such periods. In an economic downturn, on the other hand, the focus is increasingly on defensive sectors such as utilities or healthcare, which deliver stable returns even in weaker market phases. This flexible reallocation makes it possible to actively exploit cyclical developments and adjust the portfolio accordingly.
How does active management protect against risks?
A key aspect of active management is targeted risk management to limit losses. Active intervention is possible in phases of high volatility:
- Hedging through liquidity reserves
- Increase investments in low-correlation investments such as gold, real estate or bonds
- Adjustment of the weighting of risky investments
- Aligned interest through co-investment by the managers
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What is the difference between active management and active speculation?
An active portfolio concept is based on sound analysis, long-term convictions and structured decision-making processes. In contrast, speculation pursues short-term profit opportunities, often with higher risk and without a clear strategic basis.
How objective are the decisions of an active manager?
Professional managers like us at Point Capital work on the basis of structured processes, data analyses and research findings. Personal opinions or emotions play a subordinate role in decision-making – systematic quality assurance is key.
Does active management also make sense for smaller assets?
Yes, active management can also make sense for manageable investment amounts – for example, if individual goals, risk preferences or personal circumstances need to be taken into account. Many asset managers now offer graduated models.
