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SKAGEN's investment philosophy is centred on active, value-based fund management; a combination we believe ensures the best results for clients.
The portfolio managers aim to outperform the broader stock market, enabled by unconstrained mandates and the freedom to invest with conviction in their best ideas. They are agile when selecting the companies with the greatest potential to create value and how it can be achieved. We also believe that engagement with companies is key to delivering sustainable risk-adjusted returns.
All SKAGEN portfolio managers invest bottom-up by selecting the companies they believe will deliver the most value for clients. Investment decisions are based on detailed analysis and deep knowledge of companies, irrespective of their inclusion or position in an index. We strive to beat the market and create portfolios that diverge from conventional benchmarks to achieve this.
- Unconstrained: Unconstrained mandates give us the freedom to search for the best opportunities from across the globe. They also enable us to create diversified portfolios by geography, sector and investment theme to control risks for clients.
- Conviction: We are high conviction investors who build concentrated portfolios of our best ideas. We act quickly and decisively when price targets are reached, or if an investment case deteriorates, and redeploy capital into more attractive ideas to optimise the funds' returns.
We invest in companies whose assets or earnings potential isn't fully reflected in their share price and take a broad view of value creation. Portfolio managers typically identify businesses with clear catalysts to correct their mispricing and those with an underappreciated ability to compound value over time.
- Agility: We often look beyond traditional metrics to uncover value hidden on company balance sheets or within revaluation triggers. Agile thinking can also lead us to businesses whose intrinsic earnings capacity or growth potential is underestimated by the market.
- Engagement: Releasing value can require engagement and patience to maximise long-term results. We are active owners and engage with our portfolio companies on key business, financial, environmental, social and governance issues, using performance indicators to drive sustainable returns and revaluation over time.