Novum Partners SA develops asset allocation strategy approaches that combine institutional discipline with the flexibility of private wealth management.
The Geneva-based company, formerly known as Novum Capital Partners SA, takes an institutionally oriented approach to strategic asset allocation, while taking into account the individual needs of wealthy private investors. This approach differs significantly from traditional family office services in its systematic and data-driven methodology.
Novum Partners Geneva has developed a unique philosophy for strategic asset allocation that combines elements of institutional investment processes with the specific requirements of private clients. The company uses both quantitative models and qualitative valuation approaches to construct robust investment portfolios. This hybrid approach allows it to leverage the advantages of institutional discipline without losing the flexibility necessary to meet individual client needs.
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Institutional methods for private assets
Institutional investors have one advantage: time. Pension funds invest for decades. Insurance companies invest for even longer periods. This allows for a level of calm that private investors often lack.
Why not take advantage of this calm when it comes to private assets? Sounds logical, doesn’t it? Novum Partners SA, formerly known as Novum Capital Partners SA, has done just that. It has transferred institutional thinking to private portfolios.
In concrete terms, this means less hustle and bustle and more system. Instead of rethinking the strategy every month, a thorough analysis is carried out once a year. Instead of reacting to every market commentary, long-term trends are tracked.
But be careful – copying is not that simple. What works for a pension fund with 50 billion doesn’t automatically work for a family portfolio with 50 million. The liquidity requirements are different. The emotions are different too.
Quantitative fundamentals with human interpretation
Numbers don’t lie. Most of the time. But they don’t tell the whole story, either. Historical correlations? Helpful. But do they guarantee the future? Probably not.
The company therefore uses quantitative models as a starting point, not as an end point. The machine calculates, the human interprets. It’s a division of labour that has proven its worth.
A practical example: the model suggests 15% emerging market equities. Sounds reasonable. But there is currently political turmoil in three important markets. So perhaps the allocation is reduced to 10% and more is allocated to stable regions.
Flexibility within a systematic framework. That is the key.
Investment portfolios beyond benchmark logic
Benchmarks are practical. They are indispensable for institutions. For private investors? Sometimes they are more of a hindrance. Why should a Swiss investor necessarily have 60% in equities and 40% in bonds just because some index says so?
Novum Partners therefore takes a different approach.
The benchmark does not determine the portfolio. The portfolio is constructed according to the client’s needs. Period.
That could mean 70% alternative investments for a patient investor. Or 50% cash for someone who needs liquidity. The main thing is that it suits the person behind it.
This freedom comes at a price. Without a benchmark, performance is more difficult to measure. Successful or not? Not so easy to answer. But more honest.
Dynamic allocation instead of rigid percentages
‘We have 30% equities’ – you often hear statements like this. It sounds precise. But it’s mostly nonsense. Markets move every day. Should you really reallocate every day?
Bandwidths are better. Equities: 25% to 35%. Depending on the market situation, actions are taken within this range. Sometimes more, sometimes less. But always in a controlled manner.
This flexibility requires discipline. Without clear rules, it quickly turns into emotional back and forth. With a system, it remains strategic.
The Geneva-based company has developed special processes for this purpose. Monthly reviews, but only quarterly adjustments. Except in truly extreme situations.
Alternative investments as a strategic building block
Equities, bonds, cash. That used to be it. Today, the portfolio universe is much larger.
Private equity, hedge funds, commodities, infrastructure. Everything is available, everything is complicated.
Institutional investors have been taking advantage of this diversity for a long time. It is not yet so widespread among private investors. That’s a shame, really. The diversification benefits are obvious.
Novum Partners Geneva has therefore made alternative investments a focus. Not as a playground for speculators, but as a serious addition to traditional asset classes.
Access is the problem. Minimum investment amounts of several million are not uncommon. Complicated structures are a given. Expertise and experience are required.
Due diligence for complex structures
Not all alternative investments are the same. A private equity fund is different from a hedge fund, even though both are considered ‘alternative.’
Due diligence is correspondingly complex. With a traditional equity fund, a look at performance and costs is sufficient. With an infrastructure investment, contracts must be reviewed, projects evaluated and management teams analysed.
Time required: several weeks per investment. At least. For larger commitments, sometimes months. Is it worth it? Definitely. But only with the right expertise in-house.
The most important points to check for alternative investments:
- Track record of the management teams across different market cycles
- Transparency of the investment strategy and operational processes
- Appropriateness of the fee structure compared to the industry
- Liquidity profile and exit strategies for individual positions
Credit consulting as a portfolio supplement
Debt is not inherently bad. It depends on what it is used for and on what terms. When interest rates are low, loans can even make sense.
Leverage for the portfolio.
Sounds like speculation? Not necessarily. If you finance a property that generates stable rents, that is a very conservative approach. The loan practically finances itself.
The credit consulting team thinks in these terms. Not isolated financing, but an integral part of the asset strategy. Used cleverly, debt can improve the overall return.
Of course, with caution and clear limits. Nobody wants to lie awake at night worrying about excessive debt.
Structured solutions for special needs
Sometimes standard loans are not ideal. Example: financing an art collection. Which bank knows about Picasso valuations?
Specialised providers can help here. They exist, you just have to find them. And understand the terms and conditions. Art as collateral works differently than real estate or securities.
Such financing requires tailor-made structures. Standard contracts are rarely suitable. This makes it more complicated, but also more interesting.
New Yacht Consultancy Services in the overall strategy
Yachts are not just a lifestyle. If they are large enough, they are also an investment. A stable asset class? Not necessarily. But under certain circumstances, they can be integrated in a way that makes perfect sense.
Charter income can cover part of the running costs. This works quite well for exclusive destinations and high-quality vessels. Mallorca is overcrowded in summer. The Seychelles are not yet.
Yachts can often be structured cleverly for tax purposes. Depending on the flag state and usage pattern, there are interesting optimisation opportunities. Complicated, but feasible.
However, integration into the overall asset strategy requires a systematic approach. It is not simply a matter of buying and hoping for the best. Instead, it requires planning, structuring and optimisation.
Risk management with an institutional approach
Not all risks are the same. Volatility is not the same as permanent loss. Liquidity risk differs from market risk. These distinctions are important.
Institutional investors understand this. Different types of risk require different management approaches. Diversification helps against market risk. But not necessarily against liquidity risk.
Novum Partners SA, formerly known as Novum Capital Partners SA, also applies this differentiated approach to private assets. Not a blanket risk concept, but several specific ones.
This enables more precise risk management. And thus often better results with the same or even lower overall risk.
Scenario planning for extreme events
What happens if? Too few investors ask themselves this question. Yet it is crucial. Markets can crash. Currencies can devalue. Countries can go bankrupt. It has all happened before.
Scenario analyses help to prepare mentally for such events. Not to predict them. That is impossible anyway. But to construct robust portfolios.
A portfolio that only works in rising markets is not a good portfolio. It should be able to survive different scenarios. Not optimally in all of them, but viable.
This robustness comes at a price. Higher costs, lower peak returns. But fewer sleepless nights. A fair trade-off for most investors.
The institutional perspective brings discipline to emotional decisions. Private investors tend to react spontaneously. Understandable, but often counterproductive. Systematics beats gut feeling. Most of the time, anyway.
