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12/2024

Individual Stocks or Funds: Which is the Better Investment Strategy?

In the world of financial investments, investors are often faced with the question of whether it is better to invest in individual shares or funds. Andres Gujan explains the role that factors such as diversification, risk/return ratio and personal preferences play in this decision.

Diversification and Risk: Individual shares are targeted investments in individual companies, which enables potentially higher returns. However, this is also associated with a higher risk, as the success of an individual share depends heavily on company-specific and market-related factors. Funds, on the other hand, spread the risk across a large number of shares or asset classes, which reduces the risk of loss. At Carnot Capital, we always keep an eye on these risk factors and periodically compare the portfolio with the ESG and impact values.

Risk-Return Profile: Individual shares can fluctuate strongly in the short term, but offer the opportunity for considerable gains in the long term. Funds offer a more stable performance over longer periods and are particularly suitable for investors who want to avoid large fluctuations in value.

Time and Costs: The selection and management of individual shares often required more time, knowledge and research. Professional fund managers, like us at Carnot Capital, deal with the portfolio on a daily basis, which reduces the effort for the investor.

Personal Preferences: The decision between individual shares and funds also depends on personal goals, risk tolerance and ethical considerations. Investors should design their investment strategy according to their individual situation and financial goals and draw on the expertise of specialised fund managers, especially for thematic investments.

“Overall, a balanced mix of individual shares and, for example, impact funds can be a sensible strategy to benefit from the advantages of both forms of investment, i.e. to achieve a good risk/return profile and make a sustainable contribution in the area of energy and resource efficiency. Andres Gujan, Founder Carnot Capital & Portfolio Manager

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Automotive Industry in Transition: Innovations Driving the Future of Mobility

Automotive Industry in Transition: Innovations Driving the Future of Mobility

Innvations in the Automotive Industry

The automotive industry is currently undergoing major developments in numerous areas:

  • ‘Connected Cars’: The vehicle as a digital platform
  • Autonomous Driving: First robotaxis, then personal vehicles
  • Electromobility: On the rise, especially in China
  • Alternative Fuels: A complement to e-mobility

Mobility is fundamentally shifting toward connected and autonomous vehicles. These changes are not only revolutionizing transportation but also influencing urban design, the working environment, and quality of life.

Digitalization and Sensor Technology as Key Success Factors

At the core of innovation lies the combination of sensor technology and computing power (including AI). Data-driven services and connected mobility are becoming the norm. Technology providers that successfully integrate sensors and digital technologies hold a particularly strong market position.

Electromobility and, above all, the increasing autonomy of vehicles free up space for passengers to pursue various activities—entertainment, work, comfort, relaxation… This, in turn, drives additional demand for sensors and chips. Expected growth rates by 2030 vary by application, reaching over 22% in some cases.

Implications for Carnot Capital

Despite these developments and attractive valuations, we are maintaining a relatively low allocation in automotive suppliers. Our semiconductor and sensor technology positions in Melexis, LEM, Infineon, and Xfab account for around 10% of our portfolio. In addition, Ems-Chemie contributes as a manufacturer of high-performance polymers that make vehicles lighter and safer. With Sandvik, we also participate in the electrification of mining: electric loaders and transporters reduce the carbon footprint of metals while increasing productivity.

We will increase our automotive allocation once we gain confidence in rising car sales and see renewed momentum in electromobility, particularly in Western markets.

Rolf Helbling / Andres Gujan, February 5, 2025

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Beyond Sustainability Forum 2026 – Rethinking Sustainability

Beyond Sustainability Forum 2026 – Rethinking Sustainability

On 7 May 2026, we participated as Co-Partner at the Finanz und Wirtschaft «Beyond Sustainability» Forum – one of Switzerland’s leading specialist events on sustainable investing. This year’s forum was held under the theme «From Wishful Thinking to Reality» and brought together top experts from the financial industry, business and academia.

An Event with Impact

The «Beyond Sustainability Forum» has established itself as a key meeting point for senior investment decision-makers, portfolio managers, ESG specialists and senior advisors from banks, asset managers, family offices and pension funds. This year, the conference once again took place at the renowned Gottlieb Duttweiler Institut in Rüschlikon – a venue that has stood for forward-looking thinking for decades.

The programme ranged from keynotes and group workshops to several parallel panel discussions. Topics such as the energy transition, the circular economy, nuclear power, the value of sustainability reporting and the role of active ownership shaped the day. As Co-Partner, we were not only present, but were able to actively contribute to the substantive debate.

Andres Gujan on the Panel

A particular highlight of the day was the panel discussion entitled «Sustainable Investing – Where is the Added Value for Clients?». Our portfolio manager and co-founder Andres Gujan took part as an invited guest, representing the perspective of an impact investing-focused asset manager.

Joining him on stage were Melanie Beyeler (Global Head Sustainable Investing, EFG International), Matthias Bachmann (CIO, Lumen Capital) and Dr. Lars Kaiser (Group Head Sustainability, VP Bank AG) – moderated by Dimitri Senik, CFA, CFA Society Switzerland.

Key Takeaways from the Discussion

The conversation was characterised by open, practice-oriented debate. The following central insights emerged from the exchange:

From ESG to Impact: Investor interest is increasingly shifting away from classical ESG criteria towards the actual impact a company has in the world. An impact-oriented approach is gaining significant ground over simply ticking sustainability boxes.

Sustainability starts at the top: True sustainability requires strong and convincing leadership that credibly lives its sustainable values. Corporate governance is therefore not a footnote, but a prerequisite for meaningful impact.

Economic viability as a foundation: Sustainability must be economically viable. Long-term value is only created when positive impact is grounded in resilient business models that enable sustainable returns – for investors and for society alike.

Performance and sustainability are not mutually exclusive: Financial performance is not a contradiction to sustainability, but an integral part of it. This conviction is a cornerstone of our investment approach at Carnot Capital.

The panel’s conclusion: sustainability today is more than an add-on. While it has become part of the business model of many successful companies, the financial industry in many places still treats the topic too much in isolation.

This finding goes to the heart of what has driven us at Carnot Capital since our founding in 2007: the conviction that impact and financial quality are not opposites, but mutually reinforcing.

Thank You and Looking Ahead

We would like to warmly thank the Finanz und Wirtschaft Forum for the valuable collaboration and the opportunity to be part of this inspiring event. The Beyond Sustainability Forum is an important place of exchange for us – with like-minded people, with critical voices and with those who want to actively shape change.

As a Swiss impact asset manager specialising in energy and resource efficiency, we are proud to help shape this dialogue. We are already looking forward to the next «Beyond Sustainability Forum» next year.

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