SKAGEN's Investment Philosophy
SKAGEN is an unconstrained, highly active equity fund manager with a value-based investment philosophy. Our portfolio managers are contrarian in their thinking and unafraid to look in unpopular places to find companies which are undervalued but with clearly identifiable triggers to correct their mispricing.
We invest with conviction in our best ideas and believe a long-term approach is key to maximising value. Our fund managers combine a traditional, common-sense investment approach with detailed risk management and analysis of environmental, social and governance (ESG) factors to deliver sustainable returns for our clients.
Broad investment mandates give us the freedom to search for the best opportunities from across the globe. They also enable us to create portfolios which are sensibly diversified by geography, sector and investment theme to minimise downside risks while maximising potential rewards.
We are highly active investors who select the most attractive companies from a risk-reward perspective, irrespective of their inclusion or position in an index. Our portfolio managers invest bottom-up and apply fundamental analysis to select the best opportunities based on their detailed knowledge and proprietary company research.
We invest in companies whose share price does not fully reflect their earnings or asset value. In addition to quantifiable upside, there must also be clearly identifiable catalysts that will unlock the true value within these mispriced companies over a reasonable time and for an acceptable level of risk.
Independent thinking helps us to identify investment ideas ignored or misunderstood 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 our track-record demonstrates that contrarian thinking is an important driver of strong investment performance.
We are high conviction investors who build concentrated portfolios of our best ideas. We are also decisive when price targets are reached, or if an investment case deteriorates, to redeploy capital into more attractive ideas and optimise our portfolios’ risk-adjusted returns.
Patience is key to delivering consistent excess returns and our investment horizon is typically three to five years. The companies we select are significantly undervalued and it can therefore take time for their intrinsic value to be reflected in an appreciably higher share price.
We believe that investing responsibly is essential to achieve the best possible risk-adjusted returns for clients. Environmental, social and governance (ESG) factors are fully integrated into our investment process to ensure optimal investments from both a financial and sustainability perspective, and we engage with companies to encourage positive change.