Björn Esser has been a Portfolio Manager in the Quantitative Investment Solutions team at MainFirst since 2016. Previously, he worked at Allianz Global Investors from 2010 as Senior Portfolio Manager in the Multi-Asset area and most recently managed a volume of almost 18 billion euros. In addition, he is involved in the CIIA and AIM (Applied Investment Management) training courses as a lecturer in asset allocation. Björn Esser studied at the University of Applied Sciences Gelsenkirchen and holds degrees in business administration as well as Certified European Financial Analyst (CEFA) and Certified International Investment Analyst (CIIA).
Topic: MainFirst Contrarian Opportunities - Benefiting from Uncertainties In Capital Markets.
Beside the much-discussed alternative risk premia like ‘momentum’, ‘carry’ and equity styles, there is another, rather unconventional, premium. The ‘reversal’ premium captures short-term mean-reversion behaviours within financial markets. By buying securities or markets that are subject to a high selling pressure while selling those everybody likes to own, this strategy acts like a market-maker providing liquidity to financial markets. Especially, when uncertainty/volatility in financial markets is high, fear and greed dictate human behaviour and eventually lead to irrational decisions and mispricings. Mean-Reversion strategies like the MainFirst Contrarian Opportunities Fund seek to exploit those misbehaviours and can deliver attractive returns during periods of market stress. This leads to real diversification benefits and improves a traditional investor portfolio’s risk-return profile significantly.