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.