Interview with Mirko Ulbrich founder and CEO of SAMT AG
Can you introduce yourself and your role in Samt.ag?
My name is Mirko Ulbrich and I am the founder and CEO of SAMT AG. SAMT AG is a Fintech Startup which aims to disrupt asset management industry. It is developed for investors who demand high performance and top end scientific trading strategies. SAMT AG makes use of scientific methods and process automation. Unlike traditional asset management firms, there is no human intervention and decisions are purely made based on data, scientific models and customer risk profile.
My role at SAMT AG involves looking after the entire workflow at SAMT AG from module design to ensuring customer success. I manage a team of highly passionate people who have years of experience in the Fintech space and want to make a change in the way asset management is done.
The SAMT AG team has spent years in financial research. Combining this with automation helps in taking the best decision for the investor. For example, in one module we have an execution strategy where we track the order book of stock exchange and place order for every investor in a way that he gets an optimal price. The system can understand how much stocks can be bought without altering the price and automatically adjusts the order size and then, waits for some seconds till the market has recovered from an order.
What are the three modules that makeup Samt.ag?
The first module deals with investing in diversified ETF portfolio using Modern Portfolio Theory and the portfolio is hedged with options which helps in reducing risks while achieving maximum returns. The second module deals with investing in alternate asset class with the help of spread trading and hedge fund investments. The third, module involves investing in undervalued stocks which are identified by our systems on the basis of various financial parameters and other stocks which are present in same sector.
In what assets does each module invest in?
Module1 invests into diversified ETF portfolio and if the investment is more than € 500,000 then, we break it down into single stocks. Module 2 is completely based on investing in Futures. In module 3 we invest in fundamental stocks but we have a trend trader for futures with outstanding results
Who are the target/ideal investors in Samt.ag?
The target audience we are looking is going to be small business owners or self-employed professionals who want to invest for their long-term goals like retirement planning.
Who can invest in Samt.ag? (EU/US etc..)
Everyone except US citizens can invest currently into the modules of SAMT AG
Can investors choose their own balance?
Yes, absolutely. We make the base investment in the core module 1 and discuss the rest with the investor. We offer an option to hedge with financial options, this can add value to an average investor.
When was this portfolio started and what has been the performance so far?
The returns on our modules have been great till now. It is approximately 26% on core module 1 https://en.samt.ag/modern-portfolio-theory and around additional 38% for module 2 YTD and around 9% YTD for module 3. The performance is cumulative as we trade with the same money on leverage, for example on a 500 000 investment we put all in the etf portfolio and trade with the same money the module 2 and 3.
Who are the professional traders who manage module 3?
Currently, it is Jens Bornschein but we have a couple of outstanding traders who currently build a track record. We will publish it once they have enough performance history.
What are the fees of each module, what are the entry, maintenance and exit fees of the fund?
We offer these modules at very affordable fees. For module 1, we charge only 0.48% management fees a year on nav and for module 2 and 3 we charge only a 20% success fee.In module 2 and 3, you only pay when you make a return. No entry, no exit fee, no data fee, no kickbacks from funds, no account fee…
What are your views on passive vs active investing?
As long as the markets go up, passive investment is the best method and over very long times passive wins. Mean reverting or traders markets make active investors the winners. Its depend on the time, every method has its time. Passive investment will be good for the coming years as the government will produce more and more fiat money and the stocks will easily outperform inflation.
Are you of the opinion that the bull market is running out of steam?
No, the government has so much liabilities that they can escape with high money printing and high inflation. In this environment, stocks will run well. The current tapering discussion will end soon and governments will do more helicopter money. It is not possible to taper under the current market environment. Even if we get a black Monday or black Friday (this is not unusual in such markets) the market will come back soon. If you can avoid losing too much in the crash e.g. with hedging with out of money options you will be the winner.
What does 2018 have in store for the markets? (or What are the key events that will shape the markets in 2018?)
Markets are driven by central banks. US will slowly taper a little in 2018 but turn back and ease again by end of 2018; ECB keeps interest rates till 2018 but buy a little less assets; China and other Asian countries have to ease more. There might be a black Friday mid 2018 but the market will close higher than it started. All in all a good environment for stocks.
Does this model work both in a bull and bear market and why?
After Bretton woods came into place, the currencies are not covered with anything of value and money is just made. This trend to fiat money will even get stronger. If you are long only you will lose in a bear market. Bear markets only take a couple of years but it can be hard to be long for 4 years in a bear market. With our options hedging model you will not lose much and can even be over water in a bear market. Other modules like the module 2 and some module 3 components are market neutral and work in a bear and bull market.
For more information, you can visit our website https://en.samt.ag
We thank Mirko Ulbrich for the interview