Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • August 2019 (Revised November 2022)
  • Case
  • HBS Case Collection

Paradigm Capital Value Fund

By: Luis M. Viceira and Elena Corsi
  • Format:Print
  • | Language:English
  • | Pages:30
ShareBar

Abstract

Karl Jan Erick Hummel had founded Paradigm Capital Value Fund in 2007 together with Columbia Business School Professor Bruce Greenwald, an expert in value investing and now chairman of the fund. The fund followed the principles of value investing to their target universe: publicly traded companies with market capitalization between €100 million and €4.5 billion based in Germany, the Nordic countries, the UK, and Ireland. Hummel and Greenwald believed they had developed an investing edge in that universe, ignored by large U.S.- and UK-based funds, through deep research and by locating their headquarters close to companies and their management. Hummel and his team of six analysts were based in a small suburb of Munich, Germany. Paradigm Capital Value Fund was highly concentrated, with 60% of its assets invested in four stocks, and held its positions for long periods of time. Hummel had to decide if it was time to divest from one of their main investments, a German manufacturer of rollover car washing systems, and instead invest in a German truck equipment supplier. At the same time, Hummel was concerned by how to grow the fund.

Keywords

Investment Activism; Investment Portfolio; Financial Management; Growth and Development Strategy; Investment Funds; Financial Services Industry

Citation

Viceira, Luis M., and Elena Corsi. "Paradigm Capital Value Fund." Harvard Business School Case 220-014, August 2019. (Revised November 2022.)
  • Educators
  • Purchase

About The Author

Luis M. Viceira

Finance
→More Publications

Related Work

    • September 2021
    • Faculty Research

    Paradigm Capital Value Fund

    By: Luis M. Viceira
    • August 2019 (Revised November 2022)
    • Faculty Research

    Paradigm Capital Value Fund

    By: Luis M. Viceira and Elena Corsi
Related Work
  • Paradigm Capital Value Fund By: Luis M. Viceira
  • Paradigm Capital Value Fund By: Luis M. Viceira and Elena Corsi
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College