Lannebo Nordic Equities will launch on June 14th and is an actively managed fund where the managers hand pick stocks in Nordic companies with long-term potential. The portfolio will be concentrated to around 30 companies considered to have an attractive valuation where the managers see potential for rising profits and increasing dividends over time.
The fund is managed by the duo behind the Lannebo Mix Fund and Lannebo Mix Fund Offensive: Charlotta Faxén and Peter Lagerlöf. Charlotta has been working with analysis and fund management since 2000 and she also has a background as a small-cap analyst. In addition to his fund management background, Peter also worked for 15 years as Head of Nordic Equity Strategy and Macro Analysis at Carnegie Investment Bank. During this period, he was appointed eight times as Sweden’s best financial analyst by Financial Hearings.
Peter Lagerlöf, fund manager: Why is the Nordic region interesting as an investment area?
The Nordic stock markets have many well-managed companies and has shown good returns over time. With the whole of the Nordic region as an investment universe, you will be exposed to industries that are not listed on the Swedish Stock Exchange. Another advantage is that business cycles between the Nordic countries are generally not synchronized as the business structure is very different, which reduces the overall economic risks in a Nordic fund.
Charlotta Faxén, fund manager: Tell us about your investment philosophy and -process for Lannebo Nordic Equities.
The fund will invest in both large- and small caps traded on the Nordic exchanges. We invest in companies whose business models we understand and where we see significant potential over the long term at a reasonable level of risk. The stock’s valuation is also central to the investment decision.
Which companies are interesting and what is your reasoning around buying and selling?
We tend to favour companies with sales growth, both organic and acquired, with a cash flow that is sufficient for both dividends and acquisitions. It is important to remember why you have invested in a company and not find excuses to continue to own it, particularly if certain events occur in the company or on the market in which the company operates.