Björn Esser, portfolio manager at MainFirst Asset Management, is taking on the topic of contrarian opportunities when he presents at the upcoming Nordic Summit Stockholm 2020, hosted by InvestmentEurope at the Grand Hotel in the Swedish capital on 10-11 March.
Esser will highlight the 'reversal' premium, which he describes as a less conventional premium than others such as momentum or carry. It focuses on buying securities or markets subject to high levels of selling pressure, while selling those everbody likes to own; this makes the strategy act like a market maker providing liquidity.
Using mean-reversion strategies means taking advantage of behaviour in the wake of uncertainty and volatility in financial markets; this is when investors tend to make irrational decisions leading to mispricings, Esser argues.
Esser has been a portfolio manager in the Quantitative Investment Solutions team at MainFirst Asset Management since 2016. Previously, he worked at Allianz Global Investors from 2010 as senior portfolio manager in the Multi-Asset area and most recently managed a volume of almost €18bn. In addition, he is involved in the CIIA and AIM (Applied Investment Management) training courses as a lecturer in asset allocation. Esser studied at the University of Applied Sciences Gelsenkirchen and holds degrees in business administration as well as Certified European Financial Analyst (CEFA) and Certified International Investment Analyst (CIIA).