Website Disclaimer October 2024

Important Legal Information & Terms of Use

By using the Cape Capital website (“Website”), you declare that:

  • You are a qualified investor according to Art. 10 para.3 of the Swiss Collective Investment Scheme Act (CISA) and/or a professional or institutional investor according to Art. 4 of the Financial Services Act (FinSA).
  • You are domiciled in Switzerland
  • You have understood and agree to the following Important Legal Information and Terms of Use (together “Conditions”)

By clicking “Accept all” you acknowledge and accept the following Important Legal Information and Terms of Use:

About this Website

The content of this Website (including microsites) has been prepared by Cape Capital AG, with its registered address at Utoquai 55, 8008 Zurich, Switzerland (“Cape Capital”), duly registered at the commercial register of the Canton of Zurich with number CHE-109.617.147. and contains the views and opinions of the particular individuals and is for general information and marketing purposes only. All copyrights and other rights, included but not limited to logos and registered trademarks relating to the entire content of the Website are reserved exclusively to Cape Capital or the specifically designated right holders. Any use, in particular the reproduction or publication in full or in part is permitted only with the prior written consent of Cape Capital. Cape Capital may from time to time suspend the operation of this Website for repair, maintenance or improvement work, or in order to update or upgrade its content or functionality. Cape Capital may also change the format, content and/or access of this Website at any time at its sole discretion without notice. Although Cape Capital believes that information provided on this Website is based on reliable sources, content on this Website is presented only as of the date published or indicated, and may be superseded by subsequent market events or for other reasons. Therefore Cape Capital cannot assume responsibility for the quality, correctness, timeliness or completeness of the information contained herein. Unless otherwise stated, the numbers/figures on the Website are unaudited.


Regulatory Status & Ombudsman

Cape Capital is a regulated asset manager of collective assets according to the Federal Act on Financial Institutions of 15 June 2018 (FinIA) and supervised by the Swiss Financial Market Supervisory Authority FINMA, Laupenstrasse 27, CH-3003 Bern, Switzerland (FINMA). The Website contains information about various collective investments (“Funds”) which may have been registered or otherwise notified for distribution and marketing in the jurisdiction you have selected. Please note, that such registration or notification does not mean that the Funds are suitable for all investors and their investment objectives, financial situation and risk profile. As an asset manager of collective assets, Cape Capital is, among others, subject to the rules under the Swiss Financial Services Act (FinSA), the Swiss Collective Investment Schemes Act (CISA) and the Swiss Financial Institutions Act (FinIA).Cape Capital is affiliated to the following Ombudsman according to FinSA: Finanzombudsstelle Schweiz (FINOS), Talstrasse 20, CH-8001 Zurich, Switzerland. For further information, please refer to the General Client Information Document available on the Website which forms an integral part of these Conditions.


No Solicitation, Offer, Recommendation or Advice

Nothing contained on this Website constitutes a solicitation, an offer or a recommendation to buy or sell any Cape Capital Funds or other financial instruments, nor does it constitute any form of personal investment advice which takes into account your personal circumstances. Cape Capital does not provide investment, legal, tax or other advice through this Website and nothing herein should be construed as such advice. Cape Capital does not represent that any Cape Capital collective assets or financial instruments mentioned on this Cape Capital website are suitable for any investor. Investment or other decisions should be made solely on the basis of the relevant product and/or service documents (prospectus/offering memorandum, fund contract/articles, key information documents, financial reports) of the respective collective investment. If not a Cape Capital client, it is strongly recommended to contact a professional financial advisor, tax consultant or other qualified expert in order to determine whether an investment in a Fund or other financial instrument corresponds to the specific requirements and preferred level of risk of the investor.


US Persons

Any collective investment schemes mentioned on this Website may, unless explicitly stated otherwise, not be offered, sold or delivered to United States (U.S.) citizens or persons resident or incorporated in the U.S. and/or other natural or legal persons whose income and/or returns, regardless of origin, are subject to U.S. income tax, as well as persons who are considered to be U.S. persons pursuant to Regulation S of the U.S. Securities Act of 1933 and/or the U.S. Commodity Exchange Act, in each case as amended from time to time.


Risk Considerations

The provision of financial services and investments in Funds and other financial instruments involve opportunities but also bear risks, including the risk that the value of investments and the income therefrom may fall or rise and investors may not get back the full amount invested or may even lose all of their investment. Investors should ensure to have fully understood such risks before taking any investment decisions. Cape Capital strongly advises to consult the brochure “Risks Involved in Trading Financial Instruments” of the Swiss Bankers Association (SBA) as well as  the relevant documents of the respective Fund or financial instrument and to seek professional investment advice before taking any decision to invest. Investors should note, that these Conditions do not represent a complete statement of risks associated to a Fund or a financial instrument. Past performance is no indication of current or future performance. Performance data do not include commissions and costs incurred by investors when subscribing or redeeming Fund shares.Investments, in particular collective investments in private equity, venture capital and other illiquid assets involve an above-average degree of risk, including the risk that losses may even exceed the original investment and should be seen as long-term in nature.


No Warranties

The use of this Website, including any information accessed, downloaded or otherwise obtained through the Website is at your own risk. This Website, together with all content, information and materials contained therein, is provided “as is” and “as available”, without any representations or warranties of any kind, whether express or implied, with respect to the Website, and all information and functionalities contained therein.


Limitations of Liability

IN NO EVENT SHALL CAPE CAPITAL BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, CONSEQUENTIAL OR OTHER DAMAGES (INCLUDING WITHOUT LIMITATION DAMAGES FOR LOSS OF DATA, BUSINESS OR PROFITS) ARISING OUT OF OR IN CONNECTION WITH THESE CONDITIONS, THIS WEBSITE, THE INABILITY TO USE THIS WEBSITE OR ANY INFORMATION OBTAINED OR STORED THERFROM. Cape Capital excludes any liability for any loss, damage or alteration of any kind including but not limited to transmission to losses, delays, misunderstandings, unauthorized interception by third parties, duplication or fraud, except in the event of gross negligence on the part of Cape Capital. Any transmission or download of information is entirely at your own risk.


Use of Links

The hyperlinks on the Website are only provided for information and convenience purposes. Cape Capital is not responsible for the content of external websites that link or are accessible from this Website. Cape Capital does not assume any responsibility or liability with respect to any website accessed via this Website. Please note that when you click on any external website’s hypertext link you will leave this Website. You should review the privacy statements of such websites carefully before you provide any personal or confidential information.


Electronic Communication Channels

The use of electronic communication channels, in particular unencrypted e-mails and text messages, is associated with various risks which may include, but are not limited to, the risk of transmission errors, alterations or duplications, the risk of interception or manipulation of content and the risk of introducing malicious software (malware) by unauthorized third parties. By using such electronic communication channels, you accept these risks and agree to bear any resulting losses or damages.

Data Protection and Privacy Settings

Cape Capital has established a Cape Capital Privacy Notice, which forms an integral part of these Conditions. It explains how personal data is collected and processed at Cape Capital, including this Website. Cape Capital uses cookies to personalize and improve site experience. You can at any time change or withdraw your consent from the Cookie Declaration on the Website. Your consent applies to the following domains: capecapital.com. Your current state: Consent accepted or Consent rejected. Manage your consent.


Applicable Law and Jurisdiction

The access and use of this Website, and these present Conditions are governed by substantive Swiss law with the exclusion of the conflict of law principles. The place of jurisdiction is Zurich, Switzerland.

Last Update: October 2024

Your preference will be securely stored for the next 30 days.

DeclineAccept All

To access the website, the terms and conditions need to be accepted.

View terms
Preferences

This Cookie Policy explains what cookies are and how we use them, the types of cookies we use i.e, the information we collect using cookies and how that information is used, and how to control the cookie preferences. For further information on how we use, store, and keep your personal data secure, see our Privacy Policy. You can at any time change or withdraw your consent from the Cookie Declaration on our websiteLearn more about who we are, how you can contact us, and how we process personal data in our Privacy Policy.Your consent applies to the following domains: capecapital.com

Accept all cookies

These items are required to enable basic website functionality.

Always active

These items are used to deliver advertising that is more relevant to you and your interests.

These items allow the website to remember choices you make (such as your user name, language, or the region you are in) and provide enhanced, more personal features.

These items help the website operator understand how its website performs, how visitors interact with the site, and whether there may be technical issues.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

The power of communication in an increasingly polarised world

FOLIO Edition VI
Impact & Environment

Regardless of personal opinions, there’s no disputing that divisive public figure Elon Musk knows how to steer the course of the conversation. But what lessons, if any, can leaders learn from studying his outspoken narratives and how can trust be rebuilt in the current unstable political climate?

Right now, Elon Musk would likely come close to topping a list of the world’s most controversial public figures. Yet eight years ago, when German-born, Switzerland-based academic Dr Dorothee Winkler, decided to write her doctoral thesis on non-market strategies in an ideologically polarised world, and chose him as one of her case study subjects, he wasn’t anywhere near as notorious. “It was clear that we were entering a period of very strong polarisation and the initial idea was to think about how firms could deal with this new environment,” she recalls. “I thought the automotive sector and Tesla would be interesting, especially as Elon Musk was already also looking at space exploration, and a CEO activist, publicly speaking out on social, environmental, and political issues – a phenomenon at the time. It turns out he was a good choice as quite a lot happened.”

Dr Dorothee Winkler

This is something of an understatement. Dorothee and her University of Zurich co-authors evaluated data from 2013 to 2022, covering Barack Obama’s second presidency, Donald Trump’s first and most of Joe Biden’s time in office. During this time, Elon made a complete 360-degree turn in his opinions using two communication strategies. “Initially, he was very one-sided and clearly aligned with the democratic standpoint. This he communicated in an unequivocal, non-robust way, by portraying himself as an entrepreneur saving the world from climate change through producing electric vehicles,” explains Dorothee, who specialises in the intersection of business with the political and societal sphere.

“Until 2016, liberal media such as The New York Times loved Elon, portraying him as a climate saver and global entrepreneur. His business also received subsidies from the government. Right-wing and conservative outlets like Fox News and The Wall Street Journal thought he was stealing taxpayers’ money from hard-working middle-class American people for expensive cars only bought by the rich,” she says, referring to observations taken from her ongoing work. As soon as Donald Trump came into power, everything changed. “Musk needed a strategy to appease him,” confirms Dorothee, also pointing out that as a company, Tesla – much like countless corporations around the world – was dependent on pleasing both sides of the political spectrum. “While customers were initially in liberal voting states such as California, to roll out elsewhere, he needed to be liked by Republicans too. We also looked into the company’s funding base and this was associated with both sides.”

His response, she explains, was to shift to robust activism. “We can see the pattern: he began to act like a chameleon, offering communicative treats for both parties.” She cites tweets about domestic job creation which aligned with the populist agenda and the notion of making America great again (liked by Republicans) and on the importance of environmentalism (liked by Democrats) which helped him gain approval all round. During this period, Elon also appealed to shared values and wasn’t aggressively critical of either side.

That is, until 2020 when he made a full right-wing swing back to non-robust activism. “He went in a conservative direction, becoming polarising and provocative. It wasn’t enough that he was clearly on the side of Trump but he began derogating the Democrats, tweeting that Biden was a dumb puppet in human form and that all social media channels were a propaganda machine for the Democrats. This was one of his reasons for taking over Twitter.”

For all the potentially damaging outcomes of such behaviour, Dorothee believes that there are some lessons that leaders can learn from his unorthodox strategies, to help navigate an ideologically polarised world without alienating stakeholders. “One route is to follow his previous risk mitigating, robust communication strategy by looking for what unites in a diplomatic way,” she says. “In challenging environments lies a unique opportunity for managers. By understanding and leveraging cross-cutting virtues, or shared values that transcend political divides, they can help an organisation not just survive but thrive.” For this to work though, messaging must be contextualised. She gives examples of appealing to the notion of the American dream in the US, for instance, compared to Italy, where family values and cultural heritage are integral to the majority.

The advantage of this depolarising approach, says Dorothee, is that businesses can remain flexible and enhance brand resilience. “In the first presidency many companies stood up and criticised Trump but now most of them ‘kneel down’ towards his political agenda to have an easier life. Instead, tailoring communications to different audiences while maintaining an overarching theme could help keep everyone on side.” Avoiding reputational risks aligned to political positioning then, ensures long-term legitimacy and market positioning. “The world will continue to be volatile and polarised but it is ultimately up to leaders whether they fuel division or foster depolarization. What’s important for investors is to analyse ideological positioning and CEO communicative behaviour of a target or portfolio company to see where they stand. This needs to be built into risk assessment strategies.”

Looking inwards, Dorothee suggests that corporate leaders focus on their own area of influence and practical ways they can create positive social cohesion. She concludes: “what some firms are doing is engaging and fostering constructive dialogue by bringing people from different ideological maps together in stakeholder dialogue rounds. This can contribute to rebuilding some of those bridges our society so desperately needs.”

In this article
Written by