ORIGO QUEST 1
origo quest 1 is a nordic alternative equity fund with focus on small and mid cap companies
investment strategy
Origo Quest 1 is an alternative Nordic equity fund that focuses on absolute returns and a sound risk-taking. The fund invests in sustainable Nordic small cap companies that are predicted to have good value potential over the long term.
The strategy is based on a conviction that companies that create common value for shareholders and society will have a significant competitive advantage in the future.
The fund also short sells selected stocks, aiming to utilize additional return opportunities and to reduce the overall market risk in the fund. The fund's short positions are often assessed to have an underestimated level of risk in relation to the valuation in combination with different types of warning signals such as unclear accounting or weak cash flow generation.
The investment team always strives to be close to the companies and to be a committed and active owner. A close dialogue with the management and other owners forms a significant part of the investment process.
All in all, the investment strategy aims to capture the growth potential of smaller companies, while the correlation with the stock market should be limited.
The objective for the fund is to deliver + 10% annualized return, measured as an average over rolling five years, with a lower risk level than the overall risk level of the Nordic stock market.
BUSINESSES QUALITY ASSESSMENT
- Sustainable business model
- Management, Governance
- Strategy
- Valuedrivers
- Barriers to entry
- Pricing power
- Business stability
- Eco system, clusters
- Free cash flow generation
- Qualities of accounting
the fund's investment model
EQUITY HEDGE l/s
- Long-bias approach
- Aims to deliver good risk-adjusted returns over time
- Strive to own quality companies with clear valuedrivers
- We short-sell companies with challenges, unsustainable growth and underestimated operational risk. Weak cash generation and doubtful accounting are also important factors in our analysis
Origo Quest 1 suits investors that:
- Believes that companies who contributes to a sustainable development will be winners in the futures
- Prefer a strategy where the fund managers have more options and can manage the fund more effeciently during different market environments
- Believes that small caps will continue to outperform the overall market for the long run
- Believes that engagement, fundamental reserach and active portfolio management adds value
- Believes that the Nordics continues to be an attractive investment region
- Appreciate that the fund's fee structure is linked to the performance
investment team
Stefan Roos founded Origo Capital in 2011 and is the responsible fund manager. Stefan has over 30 years of experience as a small cap specialist. Prior to Origo Capital, Stefan was Head of Nordic equities at SEB Funds.
Carl Rydin has a background in corporate finance and financial analysis, and most recently comes from a role as investment analyst at the successful hedge fund Lucerne Capital in New York.
fund facts
| Launch date | 31 January 2013 | ||||||||
| Legal structure | Alternative Investment Fund (AIF) | ||||||||
| Domicile | Sweden | ||||||||
| Supervision | Swedish Financial Supervisory Authority | ||||||||
| Management fee | 1.25% p.a. | ||||||||
| Performance fee | 10% of upside above hurdle | ||||||||
| Hurdle rate | 90 days SSVX + 5% | ||||||||
| High water mark | Yes, no reset | ||||||||
| Purchase fee | None | ||||||||
| Redemption fee | None | ||||||||
| Subscription & redemption | Monthly | ||||||||
| Currency | SEK | ||||||||
| NAV | Monthly official NAV & weekly indicative NAV | ||||||||
| Share classes | A, B och C | ||||||||
| Minimum initial investment | SEK 500 000 (share class A and B) SEK 1 000 (share class C) | ||||||||
| Dividend | Yes, in share class B | ||||||||
| Sustainability | Integrated in the investment process |
For more information, please see the fund's Information Brochure.
Risk information
Past performance does not guarantee future performance. The value of your investment may rise as well as fall and there is no guarantee you will recover your original investment. An investment in Origo Quest 1 should be seen as a long-term investment.