Share purchases and disposals by company insiders, such as
executive board members and supervisory board members,
often have a signal effect on the share in question.
Securities transactions by the members of the executive and supervisory boards are legal as long as such transactions comply with the European Directives (MAR), but these transactions must be reported to the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) on time. The BaFin in turn publishes all so-called Directors' Dealings. The Augsburg-based investment house GBC has been analyzing these transactions for more than 10 years and systematically evaluates them.
The backdrop of this systematic investment approach is that related parties, such as management staff, recognize under- or overvaluation of the company shares at an early stage.
This insider strategy has proven itself many times since. Among other things, GBC emerged victorious from the FocusMoney Musterdepotcontest 2015/2016 with a clear outperformance. Moreover, the GBC Insider Focus Wikifolio has also shown excellent returns since 2016, which led to the launch of the GBC Insider Focus Index in September 2016.