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

With spring’s arrival, not only does nature awaken, but so does our awareness of the planet. In April, environmental protection takes center stage, culminating in the international Earth Day on April 22. This year’s theme, “Our Power, Our Planet,” underscores the importance of sustainable resource management on a global scale. One approach gaining significance is impact investing, which strategically channels capital into companies that generate measurable positive effects on the environment and society. Our funds contribute by investing in energy- and resource-efficient technologies while delivering attractive returns.

Carnot Capital: Technology-Driven Sustainability

At Carnot Capital, we believe that technological innovation is the key to a sustainable future. Instead of advocating for sacrifice, we invest in companies whose products and technologies enhance energy and resource efficiency. With over CHF 250 million in assets under management and an annualized performance of over 6% since 2007, we successfully combine ecological responsibility with financial appeal.

Strategy and Target Sectors of Carnot Capital Funds

Our funds, particularly the Carnot Efficient Resources Fund, invest globally in publicly listed companies with resource-efficient technologies. Company selection is based on an attractiveness ranking, incorporating valuation and quality criteria. A key metric in our assessment is the Return on Capital Employed (ROCE). Our target sectors align with the four classical elements:

• Fire (Energy): Building technology, Industry 4.0, e-mobility, renewable energy
• Water: Drinking water treatment, wastewater purification, irrigation infrastructure
• Earth: Agriculture, food processing, raw material recycling
• Air: Emission control, low-emission fuels

Attractive Investment Opportunities

Focusing on companies with sustainable technologies not only creates ecological benefits but also opens up economic opportunities. Technologies that enhance energy and resource efficiency have excellent growth potential, as they provide solutions to pressing global challenges. Investors thus benefit from the combination of positive environmental impact and financial returns.

Conclusion

Earth Day on April 22 highlights the urgency of sustainable action. Impact investing, as practiced by Carnot Capital, demonstrates that investments in energy- and resource-efficient technologies can make a measurable contribution to global sustainability—without compromising on attractive returns. By supporting companies that develop innovative solutions to environmental challenges, investors actively contribute to a more sustainable future.

Andres Gujan, Founder of Carnot Capital & Impact Portfolio Manager, April 2025

Award for the “Carnot Efficient Energy Fund” Confirms Sustainable Investment Strategy

We are delighted to announce that the “Carnot Efficient Energy Fund” has secured 1st place in the prestigious “Sustainable Performance Award® 2024” in the “European Equities” category. This award recognizes the fund’s outstanding 5-year performance and its commitment to environmental sustainability, social responsibility, and sustainable investment strategies. The “Sustainable Performance Award®” is presented annually by the independent ProVita GmbH and published by the magazine Das Investment. The award honors equity funds that successfully combine ecological and social objectives with financial returns. The “Carnot Efficient Energy Fund” stood out among numerous competitors by demonstrating expertise in energy efficiency and CO₂ reduction while investing in top-quality companies.

Investing in the Future
The “Carnot Efficient Energy Fund” invests in companies developing innovative technologies and solutions to sustainably reduce global energy consumption and greenhouse gas emissions. The companies in the fund’s portfolio benefit not only from long-term growth opportunities but also actively contribute to achieving global climate goals.

“This award is a fantastic confirmation of our vision and investment strategy,” said Andres Gujan, Co-Founder and Portfolio Manager of Carnot Capital. “Our goal is to generate attractive returns for our investors while creating a positive impact on the environment and society. Winning the ‘Sustainable Performance Award® 2024’ shows we are on the right track.”

Sustainability Meets Performance
With a consistent focus on energy efficiency and sustainability, the “Carnot Efficient Energy Fund” has gained the trust of institutional and private investors alike in recent years. The clear impact requirements on one hand and the financial quality standards for portfolio companies on the other are the key factors behind the fund’s success and recognition within the industry.