Leif Eriksrød and Petter Tusvik continue to deliver the goods to the unit-holders in Alfred Berg Gambak.
Although the fund fell 0.5% in May 2019, the benchmark index (Oslo stock index) fell even further – 2.6%.
So far this year the fund has reached 15.9% compared to 7.9% for reference.
In 2018, the fund fell by 2.6%, while the benchmark fell 2.2%.
Over the past three years Eriksrød / Tusvik outpaced the stock exchange with 12.6 vs. 10.9% annual returns.
For five years, the fund is also ahead: 15.2 vs. 7.5% a year.
In their summary in May, managers took advantage of consumption as the strongest sector in March, helped by agriculture.
– The fear of increasing the volume of farmed salmon throughout the year has aggravated the price expectations. However, the strong algae outbreak in northern Norway in May causes a reduction in growth and a reduction in the fear of falling prices. Aquaculture stocks are therefore strong during the period when many of the smaller players were hit hard, writes Eriksrød and Tusvik.
"By coincidence, none of the listed companies have significant business in the vast areas," the duo adds.
The communication also contributed positively, and Adivinta / Schisbed and Telenor provided the help.
– Adevinta is Schibsted's former international classified ads company, which is divided into a separate company. This stock is very popular among international investors in anticipation of further global consolidation in the industry. Schibsted is still a significant owner and hence this share will be included in the restoration, he states in the summary.
– Telenor is a defensive player, and he often does well when the market is restless, which he did in May, continues Erikrod and Tuscic.
Fear of the new oil service
The sector that contributed most negatively in May was energy.
– Oil prices have fallen sharply, which naturally has a direct negative impact on oil stocks. In addition, many of the subcontractors' shares have been hit hard by the new focus on weak balance sheets. Many investors believed in better prospects for the sector as well as better debt refinancing opportunities. That is why many of the shares have increased before the better times, wrote the duo Gambak.
"We see, however, that entry into the treaties is still too low to increase banks' appetite for lending to the sector and adds that the fear that new capital has to come seems to be on the increase."
Funding is also burdened.
– Because of its size, DNB has contributed the most, although the share is better than most. Storebrand and Aker were two of the big ones who had a difficult month. Storebrand announced a possible negative result in a tax case, while Aker was overtaken by weak stock price changes in Aker BP and Aker Solutions, the managers said.
Grieg Seafood (24.8%), Nel (10.2%) and BW Offshore (15.8%) are the biggest winners in the portfolio, while Aker BP (15.4% , 0%) and Equinor (11.8%) dropped out the most.
Nel is also the largest share of the fund (relative to the reference index). BW Offshore and Grieg Seafood are also among the five largest stocks in the fund. The smallest is Telenor's share.
Nelang does not scare
In May, Alfred Berg Gambac decided to reduce the exposure to Aker BP, Equinor, Schibsted B and Nel (which is still the most overweight portfolio). In addition, Spectrum was sold after TGS filed a bid for the company.
The time to hedge the sale / profit in Nel proved to be good, as stocks fell sharply due to the fact that two key investors sold large positions in early June.
Alfred Berg Gambac took advantage of the price drop to raise the holding again last week and with 36.7 million shares, the fund is now the second largest shareholder by three percent.
Yesterday the shares went on a new bang afterwards On Monday an explosion in Sandvika, but Eriksrød can not be brought to glory.
"The Monday episode can hit all types of companies and it does not affect the investment case on our side. Such incidents are not contained, says the manager in Finansavisen's comment.
Also read: The market value of Nel narrowed to NOK 2.1 billion after the explosion
With regard to the purchase, the fund has increased further in Adevinta and Grieg Seafood, as well as a new position in Protector Insurance. This is how the shares return to the portfolio after it He was thrown to the door after miserly figures for the second quarter.
– The stock resumed shortly after a long bad period. The sector is strong internationally, explains Eriksson on Hegnar.no on Wednesday.
The five biggest investments in Alfred Berg Gambak are Tomra (5.88%), Nel (5.36%), Aker BP (4.99%), Mowi (4.85%) and DNB (4.78%).