Investment strategy and process
There are only two ways to consistently produce above average returns in the medium to long run: by investing in companies that are trading below intrinsic value and by increasing intrinsic value post investment. The Fund strives to capture both these levers.
The Fund does so by following a strategy that has been executed successfully since 2010: by putting Warren Buffet’s glasses on, and evaluating investments where an active owner is striving to significantly increase intrinsic value.
Therefore, the Fund’s investments typically all have a renowned active owner among its shareholder base. This active owner is typically a Private Equity-, and/or Activist-fund. The common theme is that these are among the best investors in the world and are striving to change the companies they invest in.
The changes are typically made through restructurings, strategic repositioning, and similar activities that enhance the generation of free cash flow.
The Fund’s evaluation/selection process is built on proprietary analysis: the manager must understand the companies, the companies need to have strong competitive position, and relatively predictable cash flows. The allocation process is constantly emphasizing the companies that at each time are deemed to offer the highest risk adjusted returns return. The Fund is constantly exposing the portfolio to new cases, which means it is continuously exchanging mature investments that have gone well, with new investments that offer higher risk adjusted potential.
Exposure to renowned PE and Activist...
As an investor in the Fund, You will be investing in public stocks, in parallel with the most renowned Private Equity and Activist Funds.
You will have access to investments targeting outsized returns, predicated on the identification of important mispricing and significant operational and strategic change.
You will thus have access to the results of “active ownership” and the alpha it generates.
…with added benefits.
Your investment will be charged a fee that is lower than the fees charged by a typical PE and Activist Fund.
Your capital will also be more accessible to you, through better liquidity than PE and Activist Funds.
The fund is also smaller than the typical PE and Activst fund, allowing your capital to trade in and out of situations more freely, and through that take advantage of temporary price swings to optimize risk reward.
Strong track record delivering "alpha"...
The strategy is proven, and has delivered 20%+ CAGR since 2010, beating relevant market indices by a significant margin.
The Fund complements a portfolio along the “yale model”, meaning it adds to the efficient frontier in a portfolio of index funds, real estate, bonds, and hedge funds. Especially in the mid to long run.
...and a high-performing team
The Advisory Team of the fund has a strong track record of delivering exceptional value to our clients and to our companies. We have managed billion of dollars in the public and the private markets, built billion dollar companies as CXOs, steered transformative companies as board members and advised blue chip companies as consultants.
The mix of competencies, that includes both operational, investment, and advisory capabilities, are well suited for the task at hand.
Kopparbergs Bryggeri
25,0 x MOIC and 70% IRR realized returns
Investment made between 2010-2016. Company with two brands: Kopparbergs Cider, a category killer as the first pear based cider in the world, and Sofiero, the most sold beer brand in Sweden. Traded at 4x EBITDA with 3x Net Debt. Grew at ~15% CAGR per year during holding period, due to international expansion of cider. Doubled EBITDA margin from ~10% to peer levels at ~20%. Formed a distribution agreement with SABMiller during holding period.