Hoofbosch invests the vast majority of assets (currently 75%) in solid companies in sectors including consumer goods, pharmaceuticals and oil. We do not invest in real estate, emerging markets, technology or financial services.
From time to time, something extremely interesting bleeps on our radar screen: an opportunity to invest outside the scope of the fund, such as in biotech or social media. In such cases, our investments are always made in companies with trusted and experienced management. Approximately 10% of our fund is currently invested in a 'special case' company. In the past that special investment has included Crucell, a Dutch biotech company, which was taken over by Johnson & Johnson. Currently, the fund has a small investment in Galapagos, a Dutch biotech company.
The fund will also invest up to 5% in gold. We view gold as a currency, not a commodity. Unlike other currencies, however, gold does not devalue over time.
Up to 10% of the fund is invested in government bonds of Switzerland and the Netherlands. These are the world's soundest economies. While we view the United States as a great place for solid companies to thrive, we prefer a longer track record with regard to government debt before investing in U.S. bonds.
Hoofbosch never applies any leverage or invests in derivatives.