Novum Partners Geneva develops systematic approaches to portfolio stabilisation that ensure structural security for ultra-high-net-worth families even in volatile market phases.
Geneva-based Novum Partners SA, formerly known as Novum Capital Partners SA, focuses on tailor-made asset allocation strategies and alternative investment solutions for wealthy private clients. The company has developed specialised methods to stabilise portfolios against market turbulence.
Novum Partners Geneva is positioning itself as a leading family office services provider with a strong focus on structural portfolio approaches designed to ensure stability even in volatile market phases. The FINMA-licensed company serves a selective client base and combines traditional asset management with innovative risk management strategies. By integrating different asset classes and taking macroeconomic cycles into account, the Geneva-based company develops robust investment portfolios for long-term investors.
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Fundamental principles of portfolio stability
The Geneva-based company takes a methodical approach to constructing stable portfolio structures. Central to this is the recognition that traditional diversification approaches often lose their effectiveness in times of crisis. Correlations between asset classes tend to increase in stressful situations, posing significant challenges for conventional risk models.
The strategy is based on four key pillars: firstly, the systematic analysis of macroeconomic cycles; secondly, the implementation of robust risk management mechanisms; thirdly, the integration of alternative investment approaches with low correlations to traditional markets; and fourthly, continuous adaptation to changing market conditions.
Novum Partners SA Geneva implements a structured approach that goes far beyond geographical and sectoral diversification. The concept encompasses temporal diversification through staggered investment cycles, strategy diversification through different investment philosophies within a portfolio, and factor diversification to reduce specific risk concentrations.
Structural diversification as a foundation
This is implemented in practice through systematic allocation between different risk factors and investment styles. The core components include:
- Growth and value-oriented strategies with different time horizons
- Duration risks in bond investments from short to long term
- Targeted exposure to different currency areas
- Geographical diversification between developed and emerging markets
- Sector allocation with countercyclical elements
Particular attention is paid to constructing portfolios that remain functional in various macroeconomic scenarios. This requires a detailed analysis of historical market cycles and the development of models that can also take into account extreme market events and so-called ‘black swan’ events.
Implementation is gradual and takes into account the individual liquidity needs and specific risk capacities of clients. Both quantitative models and qualitative assessments are used to achieve an optimal balance between return expectations and effective risk control. The portfolio construction is continuously monitored and adjusted as necessary.
The challenge lies in striking the right balance between diversification and concentration. While broad diversification reduces risk, excessive diversification can lead to dilution effects. Novum Partners SA Geneva has therefore developed specific algorithms that determine the optimal number of positions for different portfolio sizes.
Macroeconomic cycle analysis
Another focus is the systematic analysis of macroeconomic development patterns. Novum Partners Geneva has developed proprietary models that combine various economic indicators and derive implications for different asset classes.
This analysis includes both traditional economic indicators and alternative data points such as sentiment measurements, liquidity cycles and structural demographic trends. The integration of these different sources of information enables a more differentiated assessment of market risks and opportunities.
Particular attention is paid to identifying turning points in economic cycles, as these often present the greatest opportunities, but also the greatest risks for portfolios. The models developed take into account both quantitative metrics and qualitative factors, such as political stability and regulatory changes.
Macroeconomic analysis feeds directly into tactical asset allocation, enabling portfolios to be proactively adjusted to changing market conditions. However, this is always done within the framework of the long-term strategic orientation and taking into account the individual investment objectives of the clients.
Alternative investments as a stability factor
A key component of the strategy is the targeted integration of alternative investments. This asset class typically offers lower correlations to traditional markets and can therefore have a stabilising effect on overall portfolios, especially in phases of increased market volatility.
Selection is based on strict quantitative and qualitative criteria. The most important evaluation criteria are:
- Liquidity profile and realistic investment horizon of the strategies
- Proven track record of the management teams across various market cycles
- Full transparency of the underlying investment strategy and processes
- Alignment of interests between fund managers and investors
- Robust operational infrastructure and compliance standards
- Appropriate cost structure in relation to expected value creation
Due diligence analysis is particularly important here, as it not only takes financial indicators into account, but also assesses operational aspects, compliance standards and the quality of risk control systems. This comprehensive review is essential, as alternative investments often have more complex structures and less transparency than traditional asset classes.
Diversification within alternative asset classes
Novum Partners SA Geneva also pursues a diversified approach within alternative investments. This includes various strategies such as private equity, hedge funds, real assets and structured products, each of which has different risk/return profiles and correlation characteristics.
The allocation between these categories is dynamically adjusted to market conditions and opportunities.
Both tactical considerations and strategic asset allocation decisions play an important role in this process.
Risk management in volatile phases
Experience from past market crises has shown that static allocation models reach their limits in highly volatile market phases. The company has therefore developed adaptive risk management systems that can react proactively to changing market conditions.
The system is based on continuous monitoring of various risk indicators and early warning signals. It takes into account not only traditional volatility measures, but also alternative risk measures such as value-at-risk under various scenarios, expected shortfall and comprehensive stress test results.
Dynamic adjustment mechanisms
If defined risk thresholds are exceeded, systematic adjustment mechanisms are activated. These range from tactical allocation changes and temporary hedging strategies to complete portfolio rebalancing, which adjust the overall risk profile to the changed market conditions.
These adjustments are not implemented mechanically, but also take into account qualitative factors and the specific needs of individual client portfolios. This ensures that risk management measures are not viewed in isolation, but are embedded in the overall context of the individual asset strategy.
Credit consulting as an integrated service
In addition to portfolio management, the company also offers comprehensive credit consulting services. These complement the overall strategy by helping clients optimise their financing structures while creating liquidity for attractive investment opportunities.
The advice covers various specialised forms of financing such as Lombard loans against securities collateral, optimised real estate financing with institutional terms, structured financing solutions for alternative assets and the financing of luxury goods such as works of art or yachts.
New Yacht Consultancy Services as a specialisation
New Yacht Consultancy Services is an exemplary segment of the holistic support strategy.
This area illustrates the comprehensive approach to serving high net worth clients and goes far beyond traditional asset management.
The service covers the entire value chain of yacht purchase and management, including detailed market analysis, professional negotiation, optimised financing structures, ongoing management and strategic optimisation of the yacht investment for maximum value preservation.
Regulatory compliance and institutional quality
As an asset manager licensed by FINMA and supervised by OSIF, Novum Partners Geneva is subject to the highest Swiss regulatory standards. This institutional structure offers clients additional security and transparency, especially in uncertain market phases.
The comprehensive compliance structure includes regular external audits, transparent and detailed reporting, and strict adherence to all relevant Swiss and international regulatory standards. This institutional quality fundamentally distinguishes the company from less regulated market participants and offers clients additional legal certainty.
