SKAGEN invests in undervalued companies where we can identify catalysts for revaluation. As contrarian investors we often find these companies by looking at unpopular markets and sectors.
SKAGEN is an active investor with a value-based investment philosophy. We select undervalued companies that are mispriced by the market, but whose value we expect to be recognised in the future and which offer great potential for the risk taken. This mispricing creates the opportunity to generate long-term excess returns for our clients.
The portfolios are carefully constructed from the bottom up, based on an attractive balance between risk and reward (risk-adjusted return) and integrating a sustainable and responsible approach. We invest with conviction, encourage contrarian thinking, and our fund managers are unconstrained in looking for undervalued companies.
We seek undervalued companies where our proprietary research demonstrates that they have been mispriced by the market and where we can identify clear triggers for their true value to be realised.
It may take time before the intrinsic value of a company is reflected in the market price. Our investment horizon is typically 3-5 years and we attach greater value to fundamentals than to short-term fashions or trends. Patience is key to delivering superior and consistent returns.
Non-consensus thinking helps us to identify investment ideas ignored or shunned by the market. Our curiosity grows when others are negative and we often find value in unusual places. We are not afraid to be different and believe this is an important driver of excess returns.
We invest with conviction and build positions in our best ideas to optimise the risk-return profile of our portfolios. We are decisive when price targets are met and an investment has fulfilled its potential, according to our analysis. Conversely if our assessment of an investment case changes, we will consider redeploying capital to more attractive investment ideas.
We invest with broad mandates across all geographies and industries to find the most attractive opportunities. We create portfolios which are sensibly diversified with the aim of minimising downside risks while maximising potential rewards.
We integrate environmental, social and governance (ESG) assessment into our investment process, which allows us to make better-informed investment decisions and develop a more comprehensive view of the opportunities and risk in each investment case.