Alecta, one of Sweden’s largest pension funds with a portfolio worth 463 billion kronor, is facing scrutiny over its “hyperconcentrated” portfolio. The current number of stocks held by Alecta has raised concerns among experts like Hasslev, who emphasizes the need for meticulous monitoring of quantitative risks.
Hasslev points out that with such a concentrated portfolio, Alecta must be vigilant in managing its risks. While 200 stocks still constitute a concentrated portfolio, it does provide a broader base for investment decisions. Alecta remains committed to conducting fundamental analysis of the companies it invests in, steering clear of becoming mere index managers.
The pension fund has previously made headlines for significant losses from investments in American niche banks and Heimstaden, a Swedish real estate company. In the case of Heimstaden, Hasslev is particularly critical of what he perceives as an imbalanced deal, attributing it to Alecta’s failure to negotiate a favorable agreement for themselves.
“We have expanded our expertise to ensure such mishaps do not recur,” assures Hasslev, signaling a renewed focus on securing favorable terms in future negotiations.
Alecta’s strategic shift towards diversification and risk management reflects a growing awareness of the challenges posed by an increasingly complex investment landscape. As the fund reshapes its investment approach, investors and industry observers alike will be closely watching to see how Alecta navigates these challenges and seizes new opportunities in the market.