Navigating Resilience, Innovation, and Success in Investment Leadership Based on “People, Purpose, and Profit”!
Success is not final, and failure is not fatal. It is the courage to continue that count, says Winston Churchill. In the ever-evolving landscape of finance and investment, these words echo with profound wisdom. They encapsulate the essence of resilience and the relentless pursuit of success, a philosophy embodied by our featured personality, Werner Braunöck.
As the Founding Partner and Chief Investment Officer of Narmo Capital, he stands at the helm of a financial empire built on 25 years of rich experience in Investment Banking and Alternative Asset Management. His journey is marked by a tenacity to navigate complex terrain, and his story resonates with the very spirit of Churchill’s quote. Werner inspires and empowers enterprising forward-thinkers. Either the investors themselves in his Funds or through the investments directly.
Before establishing the Multi-Family Office “Narmo Capital” in 2013, Werner was the CIO and founding partner of VERTO Invest, a venture that left a transformative positive impact on the world through his high-impact ESG investment in www.arcticgreen.com which became the largest Geothermal Company in the world!
His expertise extends beyond conventional boundaries. As the CIO and founding partner of the Alternative Asset Management Fund “M&A Risk-Arb and Event Driven Hedge Fund” J-C-M, he served as top quartile Hedge Fund manager to international institutions and also offered insights on intricate financial matters, notably di-stressed Icelandic debt exposure for large institutions. His journey in Alternative Asset Management Funds includes significant roles as a Portfolio Manager at Griffin Capital Management and Senior Analyst at Tisbury Capital Management, showcasing his versatility and depth of knowledge.
The roots of Werner’s success trace back to his early career at Citigroup, where he honed his skills in the Corporate Finance and M&A departments in both London and New York. This foundational experience set the stage for a career marked by continuous growth, adaptability, and an unrelenting commitment to excellence.
As we delve into Werner’s story, we unravel not just a tale of professional triumphs but a testament to the courage required to weather storms, learn from failures, and persist on the path to success. In an exclusive conversation, he shares insights, lessons, and the vision that propels Narmo Capital into the future, making him a luminary in the world of finance.
Below are the interview highlights:
Could you please tell about yourself and what motivated you to embark on this sector?
The motivation for me to enter the multi-family office sector is 6th fold:
- Wealth Management Opportunity: There’s a substantial market among high-net-worth individuals and families seeking sophisticated financial management. The potential for managing significant wealth and offering personalized services as a solution provider is a strong motivator.
- Relationship Building: MFOs often aim to build long-term relationships with affluent investors. The personalization and depth of services I offer allow for strong connections, potentially leading to client loyalty and referrals.
- Customization and Specialization: My clients are motivated by the opportunity to specialize in offering customized solutions for complex financial needs, such as estate planning, succession, or philanthropic advising, which often require a high level of expertise.
- Entrepreneurial Drive: Starting an MFO was driven by entrepreneurial goals—creating and managing a business that provides specialized financial services and tailor-made advice and leadership.
- Financial and Professional Growth: The opportunities for financial success and professional growth are very motivating factors for me. The MFO sector shows lucrative opportunities as it deals with affluent clients and their substantial assets.
- Impact and Fulfilment: For some professionals, the ability to make a substantial impact on clients’ lives, their legacies, and philanthropic efforts can be a motivating factor, providing a sense of fulfillment beyond financial gain. Taking the biggest ESG impact investment as a prime example: USD 30mln in Arctic Green Energy in 2010 which -during the last 13 years- converted smog cities into “blue sky” in Asia and protected millions of people’s lives through green energy. This is to be continued globally on an even larger scale!
The MFO sector attracts individuals like me interested in offering sophisticated financial services, customizing solutions, and establishing long-term relationships with high-net-worth clients. The motivations often revolve around the opportunity to provide tailored, comprehensive wealth management and financial solutions to meet the unique needs of affluent families.
Could you please tell us about your company and its inception story?
Narmo is an independent financial advisory firm with a long-term global approach to wealth preservation and wealth planning. We provide professional advice on customized financial strategies to plan, preserve, and grow wealth for our clients. Our prime aim is to help our clients achieve their long-term financial goals by providing value at every point of contact.
We are a financial advisory firm geared towards delivering comprehensive, unbiased financial advice for institutional clients and high-net-worth individuals. Narmo was selected to serve as the main advisor to several prominent family offices. Narmo advises its clients on the best risk/reward asset allocation and identifies suitable best-in-class investments for selected mandates.
Our clients are institutions and high-net-worth individuals. To exceed our clients expectations, Narmo primarily focuses on:
Tailor-made Portfolio Construction and Asset Allocation; Comprehensive Investment Advisory and Investment Strategy Review Process; Disciplined Portfolio Monitoring and Risk Assessment Procedures; Tailor-made Generational Financial Planning; Delivering Superior Performance via Optimized Risk/Reward Analysis of Deal Flow.
Our Business:
At Narmo, we believe that the most important way we help you stay disciplined, focused, and on track is through our comprehensive step-by-step advisory process. This process is designed to uncover your full range of financial needs, from wealth planning to wealth protection to preserving your legacy. This allows us to build customized financial strategies to organize, preserve, and grow wealth in line with our clients’ plans.
Narmo’s disciplined and discerning professional team regularly performs due diligence to the highest industry standards and analyzes industries to identify specific investment opportunities and trends. Opportunities are selected based on a clearly defined set of criteria. Portfolio construction and asset allocation are executed to the highest degree of alignment with our client’s needs.
What are our USPs?
A proven track record of capital preservation combined with long-term growth; independent advice on allocation and investment; no conflict of interest because we are invested directly ourselves; a one-stop solution providing cost-conscious institutional financial advice; Tailor-made financial solutions aligning clients risk and reward targets; a professional team with 50+ years of combined financial services experience.
How do you approach investment strategy development and implementation, and what factors do you consider when evaluating potential investment opportunities?
- Set Clear Objectives and Risk Tolerance:
- Define Goals: Determine your financial goals, whether it’s wealth accumulation, retirement planning, saving for education, etc.
- Risk Appetite: Assess your risk tolerance—how much volatility or risk you can tolerate in your investments.
- Asset Allocation:
- Diversification: Spread investments across different asset classes (stocks, bonds, real estate, etc.) to reduce risk.
- Balancing Risk and Return: Allocate assets based on your risk tolerance and desired return.
- Time Horizon:
- Short-Term vs. Long-Term: Consider your investment horizon—short-term goals may require more conservative investments, while long-term goals might allow for more aggressive strategies.
- Research and Due Diligence:
- Fundamental Analysis: Evaluate potential investments based on financial statements, management, market trends, etc.
- Technical Analysis: Use historical price and volume data to forecast future price movements.
- Risk Management:
- Risk Assessment: Understand and quantify the risks associated with potential investments.
- Hedging: Consider using tools like derivatives or insurance to mitigate risks.
- Stay Informed:
- Economic and Market Analysis: Keep track of economic indicators, geopolitical events, and market trends that can impact your investments.
- Continuous Learning: Stay updated on investment strategies, market changes, and new opportunities.
Factors to Consider When Evaluating Investments:
- Market Conditions: Economic health, interest rates, inflation, etc., can affect investment performance.
- Industry and Sector Analysis: Certain sectors or industries may perform better than others during specific economic cycles.
- Company Fundamentals: Assess financial health, growth potential, management quality, competitive advantage, etc.
- Valuation: Determine if the investment is undervalued or overvalued based on its price relative to its fundamentals.
- Liquidity: Consider how easily an investment can be converted to cash without impacting its market price.
- Regulatory and Political Factors: Changes in regulations or political landscapes can influence investment performance.
- Environmental, Social, and Governance (ESG) Factors: Increasingly important in investment decisions, evaluating a company’s ESG practices can be a crucial factor.
Implementation and Review:
- Execute the Plan: Invest according to the strategy developed.
- Regular Review: Monitor and review your portfolio periodically, making adjustments based on changes in goals, market conditions, or personal circumstances.
Remember, it’s crucial to tailor your investment strategy to your circumstances and regularly review and adapt it as needed. Consulting with a financial advisor or investment professional can also provide valuable insights and guidance based on your specific situation and goals.
How do you stay informed about market trends and changes in the investment landscape?
Staying informed about market trends and changes in the investment landscape is crucial for any investment professional, including myself as the Chief Investment Officer (CIO). Here are several strategies typically employed to stay updated:
- News and Publications:
- Research Reports and Market Analysis:
- Economic Indicators and Reports:
- Networking and Conferences:
- Investment Research and Analysis:
- Regulatory Changes and Policies
- Utilizing Technology
- Investment Committees and Peer Discussions
- Continuous Education and Learning
- Continuous Learning
- Social Media and Online Communities
By employing a combination of these strategies and sources, CIOs and investment professionals can gather comprehensive information, analyze trends, and make informed decisions in managing investment portfolios within the ever-evolving financial landscape.
Can you provide insights into the future trends and innovations in the investment industry that you anticipate?
While I can’t predict the future, several trends and potential innovations have been gaining traction in the investment industry. Here are some insights into future trends that many anticipate could shape the investment landscape:
- Increased Emphasis on ESG Investing
- Technological Advancements
- Digital Transformation and Fintech Integration
- Alternative Investments and Private Markets
- Focus on Customization and Personalization
- Regulatory Changes and Compliance
- Behavioural Finance Integration
- Focus on Data Privacy and Cybersecurity
- Continued Evolution of Passive and Active Management
- Globalization and Geopolitical Consideration
