Entrepreneurs

Owner and family-managed companies think in generations, not quarters. A long-term perspective over the course of the economic cycle pays off in the form of higher profitability compared to the typical executive-led company. Entrepreneurial sustainability for your portfolio.

Investment Case Entrepreneur

Sustainable entrepreneurial practices raise returns

At the heart of every family or entrepreneur-owned business is its owner. Compared to non-family businesses, the decisions these entrepreneurs and managers make are not dictated by short-term financial targets. Longer-term goals are more important. Entrepreneurs balance their own interests with those of their employees, customers, suppliers and shareholders. Over the course of the economic cycle this long-term perspective pays off in the form of higher profitability and better returns on investment. Numerous empirical studies corroborate that claim.

Entrepreneurs – thinking in generations, not quarters

Family and entrepreneur-managed businesses are not only the backbone of the economy, they represent a special class of companies whose qualities clearly set them apart from non-family businesses. Decisions made by family and entrepreneur-managed companies are typically framed by longer-term goals; these companies «think in generations, not quarters.»

Entrepreneur-managed companies usually stick to a conservative financing strategy. Their equity capital is higher than average, and their balance sheets are stronger. These qualities make entrepreneurs more resilient during periods of crisis and permits them to pursue anticyclical investment strategies regardless of the economic cycle.

They are also distinguished by greater innovation, a sharp focus on market niches, a high degree of internationalism and stable customer relationships. Entrepreneur companies often have deep roots in their local community and cultivate a strong sense of identification with company values. Continuity and ethics come before the maximization of short-term profits.

Advantages corroborated by research

Family-run companies have become an object of research in their own right within the academic and economic communities. A large number of studies have concluded that entrepreneur-managed companies usually operate with significantly higher levels of equity capital than non-family companies. Entrepreneurs often have a substantial financial stake in their own business, which in many cases represents much of the family’s wealth. Studies have also found that entrepreneur-managed companies have higher operating margins. In the case of listed family businesses, this higher profitability translates into a better-than-average performance over the long run.

The influence a company’s shareholder structure has on its long-term performance was long neglected in practice by the investment community. Entrepreneur-based investment strategies can deliver an excess return in the long term.

However, simply creating a portfolio of listed family businesses will not automatically lead to a better-than-average performance. Every company can also have its own specific risks. Examples here are the absence of a succession plan, or when a business becomes detached from its entrepreneurial foundations, or when its minority shareholders are not treated equally. Astute stock-picking in a quantitative and qualitative sense, taking into account soft factors associated with the entrepreneurs and their roles and duties within the company, is therefore all the more important when investing in entrepreneurs.

Our expertise

Bellevue Asset Management was a pioneer in the field of entrepreneurial investing and is proud of its more than 10-year track record with successful Entrepreneur funds. In its quest to identify the most attractive investment ideas, management teams travel across Europe to meet company founders and managers in person. Prudence, skill and experience are needed to pick the right stocks. Particularly in today's challenging markets, smart stock selection is more important than ever.

Entrepreneur Funds

Birgitte Olsen
Birgitte Olsen, CFA, Lead Portfolio Manager
  • Since 2008 with Bellevue Asset Management, lead manager of the entrepreneur strategies and institutional mandates
  • 2007 - 2008 GVO Asset Management, head of portfolio management
  • 1998 - 2007 Generali Investments, Cologne, deputy head equities, portfolio manager European equities
  • 1997 - 1998 Vontobel Asset Management, Zurich, analyst and portfolio manager
  • CFA charterholder
  • Master's degree in Business Economics and Finance, University of St. Gallen (HSG)
Michel Keusch
Michel Keusch, Portfolio Manager
  • Since 2013 as senior portfolio manager European equities
  • 2007–2012 Bellevue Asset Management as co-portfolio manager of BB Toros Prime Fund
  • 2003–2007 Crédit Agricole Cheuvreux, senior equity research analyst for consumer goods and services
  • 1996–2003 Credit Suisse First Boston, senior equity research analyst for consumer goods and services
  • DESS/MBA in international management following studies at the University of Strasbourg, France, and University of Bath, UK
Karim Bertoni, CFA
Karim Bertoni, CFA, Portfolio Manager
  • Since 2015 as senior portfolio manager European equities
  • 2013-2014 European Equities analyst at De Pury Pictet Turrettini & Cie. in Geneva
  • 2000-2011 European Equity analyst/ portfolio manager at Bank Syz & Co in Geneva and London
  • 1996-2000 credit analyst/fund manager at Unigestion
  • BSc. in Business Management, BSc. in Economics and Master in Economic and Finance from the University of Geneva
  • Birgitte Olsen
  • Michel Keusch
  • Karim Bertoni, CFA

Our investment solutions

Independent research has shown that family and entrepreneur-managed businesses add value by virtue of their sustainable and long-term strategies. Bellevue's offering of Entrepreneur funds allows investors to benefit from the intrinsic strengths of this investment class.

Product Date ISIN NO. NAV YTD 1YR 3YR Factsheet

BB Entrepreneur Europe (Lux)

> I-EUR 20.02.2018 LU0415391944 383.51 2.31% 12.83% 22.84%
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> AB-EUR 20.02.2018 LU0810317205 180.55 2.21% 12.02% 20.20%
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> B-CHF 20.02.2018 LU0415392082 275.12 0.74% 21.39% 29.14%
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> B-EUR 20.02.2018 LU0415391860 359.56 2.21% 12.02% 20.18%
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> I-CHF 20.02.2018 LU0415392165 295.28 0.84% 22.26% 32.00%
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> I-GBP 20.02.2018 LU0767970303 230.39 1.56% 16.77% 46.36%
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BB Entrepreneur Europe Small (Lux)

> I-EUR 20.02.2018 LU0631859062 346.62 1.24% 25.01% 65.37%
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> B-CHF 20.02.2018 LU0631859732 311.89 -0.25% 34.43% 73.83%
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> I-CHF 20.02.2018 LU0631859575 327.99 -0.15% 35.72% 77.97%
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BB Entrepreneur Swiss Small&Mid (Lux)

> I-CHF 20.02.2018 LU1477743469 154.62 -1.63% 13.57% n.a.
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> B-CHF 20.02.2018 LU1477743543 153.25 -1.73% 12.74% n.a.
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> B-EUR 20.02.2018 LU1477743899 143.56 -0.30% 4.03% n.a.
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> I-EUR 20.02.2018 LU1477743626 144.87 -0.19% 4.81% n.a.
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News

Markets & Opinions / 10.04.2017

Record of a call with Portfoliomanagen Birgitte Olsen.

Products & Services / 01.02.2017

Bellevue has launched a Luxembourg-based version of its BB Entrepreneur Switzerland fund.

Products & Services / 25.04.2016

Ten years ago Bellevue Asset Management launched the very first investment fund in Switzerland focused...

Markets & Opinions / 14.12.2015

“Entrepreneurs think in generations and not in financial quarters”. Studies show that long t...

Markets & Opinions / 11.06.2015

A new day is dawning in Europe: “Outlook for European stocks inspires confidence” Europe&rsqu...