Investment philosophy

SKAGEN’s investment philosophy is based on investing in companies which are Undervalued, Under-researched and Unpopular; companies where we have identified potential triggers which may release hidden values, thus creating excess returns for our unitholders.

Applied value-based management

We rely on our own research and understanding of how value is created and retained in order to value company shares. What we like best are well-proven business models that generate positive cash flow, and we believe that unpopular and under-researched or poorly researched companies are often attractive.

Active management

Active management implies that portfolio managers may invest in a company based on its own merits; not because the company is represented in an index for example. We use common sense and long term thinking to try and avoid bubbles that arise when popular shares and industries are overpriced in relation to the company’s fundamental value and earnings.

Broad mandate

SKAGEN’s specialty is global investments. Where the company carries out its activity is more important than where it is listed. Our portfolio managers have the freedom to invest in industries and countries around the world, which reduces the risk more than if the investments were limited to a certain country or a specific industry.

Time horizon

SKAGEN seeks to be patient with its investments, allowing the philosophy to provide unitholders with results. Excessive changes in the portfolio can be detrimental to results. Our funds hold their investments for 3-5 years on average. Value in companies is created over time, as are the funds’ results.

How we create results

With its focus on values, the investment philosophy, combined with common sense, hard work, experience and intuition, has provided excellent results from a historical perspective. The basic principles in SKAGEN’s investment philosophy have remained unchanged since the start.