Why invest with us | Being and investments

Globally diversified portfolio lowers risk

As an investor in the fund Your investments will be spread across public companies in different geographies, different sectors, different currencies, different styles ("growth"/"value") and different sizes of companies.

By doing this You will quickly diversify away many of the most important risks when investing, and you will thus not be "putting all your eggs in one and the same basket".

Investing alongside the greatest "active owner" investors in the world

As an investor in the Fund, You will be investing in parallel with the most renowned investors in the world, typically Private Equity firms 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 initiated through Active Ownership.

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 operational and strategic change creates uncorrelated returns that are reinvested in new cases yielding further alpha opportunities.

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.

Backed by a high-performing team with strong alingment of interest

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 team, is invested meaningfully in the fund and participates both in the upside and downside together with clients.

Kopparbergs Bryggeri

25,0 multiple, ~70% annual return

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.

Case studies

Investment Philosophy

The team’s investment philosophy is founded on the conviction that transformations in companies create uncorrelated and strong returns, which, combined with heavy fundamental Due Diligence, a value focus, a mid term-focus (as opposed to short-term focus), and active weighting of positions, can be harvested optimally to create strong risk adjusted returns.

Investment Strategy

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.

In addition, we invest in businesses with predictive cash flows, usually market leaders. This is a precondition to be able to estimate intrinsic value with and without transformations. Furthermore, we apply active re-balancing of the portfolio as things progress, through heavy up front and ongoing Due Dilligence. We have an investment horizon of about two to four years, depending on how fast the transformations are implemented and/or priced in. Finally, we diversify away key factor risks such as sector/region/country/FX/style risk.

Investment Process

We fish were there is fish: Our investment process allows us to have a very efficient allocation of resources, as we are usually only looking at cases that are interesting, i.e., that already have a renowned active owner among the shareholder base seeking to change the company. In other words, we fish were there is fish.

Staged Due Dilligence centred around value/quality and transformation: We then quickly apply a consistent and methodical way to filter these cases through a "napkin model" of valuation, quality and transformation opportunities, before entering a heavier due diligence process.

Finally, once in the portfolio, we apply a dynamic ongoing Due Diligence of existing holdings, and corresponding rebalancing, while minding diversification and risk in the portfolio.