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Jennifer Wallace

20 November 2024

Jennifer Wallace has a strong track record when it comes to beating the broad equity market. As an active manager, she has consistently outperformed for over 15 years in her role as investment director and portfolio manager of the US-based company Summit Street Capital Management. 
 
In an interview, Wallace explained that her strategy boils down to analysing whether a given company is a good business that can be purchased at an acceptable discount. In other words, she is a value investor with a capital V, continuously seeking undervalued companies at good prices. Wallace elaborates on her approach to stock selection with three key considerations every investor should keep in mind: 
 
First, she examines a company's key figures and whether there are any negative factors not reflected in them. It's important to be aware that a company may have liabilities not shown in its financial statements, ranging from potential legal claims to losses on financial instruments. 
 
Next, Wallace emphasises the need to assess whether a company's earnings are sustainable. It’s one thing for a company to generate profits today, but are those earnings realistic five years from now? And if not, is the company actively working to establish new revenue streams? 
 
Finally, Wallace highlights the importance of watching out for what she calls "unquantifiables," i.e. all the potential unforeseen events that could affect a stock. Wallace pays close attention to a company’s management, ownership structure, historical capital allocations, and leadership initiatives. 
 
If you can rise above short-term fluctuations, Wallace believes there are plenty of opportunities in the equity markets. Wallace herself earned an undergraduate degree from Columbia College and later completed an MBA at The Trustees of Columbia University in New York. Prior to Summit Street Capital, Wallace worked at McKinsey & Company and as an investment banker. 
 
If you want to learn more about finding undervalued companies at favourable prices, Jennifer Wallace's presentation at SKAGEN Funds' New Year's Conference 2025 is a good place to start. On Thursday, January 9, she will speak under the theme «Focus on financial inevitabilities not noise».

Sign up to the digital conference here.

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Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on market developments, the fund manager’s skills, the fund’s risk profile and management fees. The return may become negative as a result of negative price developments. There is risk associated with investing in funds due to market movements, currency developments, interest rate levels, economic, sector and company-specific conditions. The funds are denominated in NOK. Returns may increase or decrease as a result of currency fluctuations. Prior to making a subscription, we encourage you to read the fund's prospectus and key investor information document which contain further details about the fund's characteristics and costs. The information can be found on www.skagenfunds.com. Storebrand Asset Management administers the SKAGEN funds which are by agreement managed by SKAGEN's portfolio managers.

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