SKAGEN Vekst, a prominent investment fund, is required to allocate at least 50% of its funds in the Nordic region. Currently, the fund has just under 60% of its investments in this area. One of the new Swedish companies in the fund is Sveafastigheter.
Sondre Solvoll Bakketun, who manages the fund alongside Søren Milo Christensen, mentioned that Sveafastigheter’s initial public offering was relatively unpopular due to its connection to SBB. This led to a low initial price, providing an attractive entry point for the fund. As a result, the fund has seen an impressive 18% growth this year.
Bakketun emphasized the fund’s focus on the fundamental aspects of companies. He highlighted Sveafastigheter as a well-capitalized company with significant potential to increase its profits in the coming years. Bakketun also pointed out that the company, after being part of SBB for several years, is now openly acknowledging that its operational activities have been somewhat overlooked, presenting opportunities for operational improvements.
One of the fund’s top Swedish holdings is Essity, a hygiene and health company, which Bakketun considers undervalued compared to its historical performance and competitors. He believes that Essity’s stability, lower financial risk, and improved earnings per share will contribute to an increase in its valuation.
Boliden, another significant holding in the fund, stands out among mining companies for its low political risk and strong operational track record. Bakketun expects the company to perform well in the future, especially as it emerges from a period of high investments, which will enhance its dividend capacity.
Moving on to the fund’s Danish holdings, Novo Nordisk, a pharmaceutical company known for its diabetes and obesity medications, is a key investment. Bakketun sees significant growth potential ahead for Novo, particularly with the launch of oral obesity drugs and promising Alzheimer’s treatments.
Another major investment in the fund is DSV, a global transport and logistics company. Bakketun is confident in DSV’s ability to continue delivering strong results, citing the company’s successful track record in acquisitions. He believes that DSV will create further value through strategic acquisitions in the future.
In SKAGEN Global, another fund within the SKAGEN family, DSV is also a significant investment that has performed well. The fund’s manager, Knut Gezelius, highlights DSV’s acquisition of DB Schenker and its plans for seamless integration to drive growth. However, the fund has reduced its position in Stora Enso, a forestry company, due to underwhelming performance.
Gezelius emphasizes the fund’s commitment to pragmatism and continuous evaluation of investments. If new information contradicts the fund’s investment thesis, they will take decisive action to reallocate capital to opportunities with the best risk-reward profiles.
Overall, SKAGEN Vekst and SKAGEN Global have strategically diversified their portfolios across Nordic and international companies, aiming to capitalize on growth opportunities and deliver strong returns to investors.