Origo Quest 1 February 2018

Transcription

1 Origo Quest 1 February 2018

2 "We invest in Change. We are a selective, value oriented and longterm small cap investor that are specialized in companies undergoing or expected to undergo change..." 2

3 Who we are Independent investment firm (AIF) based in Stockholm Manager of the hedge fund Quest 1 since 2013 Specialised in Nordic small- and mid caps AuM ~ 750 MSEK 3

4 5 years of truly active investing RATING FUNDS RETURN 5YR% ST.DEV 3YR% 1 Origo Quest 1 A 91,3 12,2 2 Gladiator 88,7 9,8 3 PriorNilsson Idea 83,7 11,1 4 Norron Select R 67,2 8,9 5 Pareto Nordic Alpha A 48,2-6 Catella Nordic L/S Equity I 45 8,8 7 Catella Nordic L/S Equity R 43,6 8,8 8 Danske Invest SICAV EstnEurpAbs Ip 39,6 9,6 9 Danske Invest SICAV EstnEurpAbs Ap 35,7 9,6 10 Adrigo Hedge 27,3 3,2 11 Atlant Edge 25,8 18,2 12 Aktie-Ansvar Graal Offensiv 21,7 5,6 13 Danske Invest SICAV EstnEurpAbs A-sek hp 17,3 9,1 14 Aktie-Ansvar Graal HF 17 2,8 15 Aktie-Ansvar Graal Aktiehedge 16,8 2,9 16 PriorNilsson Yield 12,1 1,2 17 Atlant Sharp 9,8 12,3 Source: Morningstar, February 2018, Category: Hedgefunds Europé L/S, Nordic based funds with 5 years track record 4

5 Team Origo Stefan Roos CIO Carl Rydin Investment Analyst Anders Nilsson Investor Relations Manager Karl Eckberg COO Anders Larsson Inst. Sales Nils Alpman Compliance Niclas Agroth Investor Relations 5

6 The Nordic Small- and Mid Cap market Unique investment opportunities ~ 500 Small Cap s and only 25% with research coverage* - Great for a research driven investor 25 23,0 Return & Risk (%) The Nordic countries has complementing industry structure 20 17,4 Indirect exposure to global and emerging markets High corporate governance standard ,7 10,5 8,8 12,2 Low political risk Easy to travel and meet management 5 5,1 3,4 Smaller Companies can grew faster and outperforms as an asset class over time** 0 US Small Caps US Large Caps US Bonds US Treasuries Yearly Return Yearly volatility * Origo estimate ** Source: Ibbotson Stock, Bonds, Bills and Inflation Yearly 2015 ( ) 6

7 Our investment philosophy Active investor with a selective approach We are long term investors We believe in specialisation We value ownership, activism and engagement We invest in change 7

8 Origo Quest 1 Objectives and investment policy Equity Hedge L/S Focusing on absolute riskadjusted returns Nordic Small Caps Concentrated portfolio Change-driven, long term strategy Max. Gross Exposure 200% Max. Net Exposure 150% Less correlation to equities than long only small cap funds Less volatility than the small cap market in general Performance based fee model with a clear hurdle rate * Please see the information brochure fore full disclosure 8

9 Origo Quest 1 Focusing on risk-adjusted absolute returns Inception: 1 February 2013 Annualised return: 13,6% Correlation vs OMXS: 0,27 Volatility: 9,6% Maximum Drawdown: 7,8% * , performance since inception, Risk ratios on 24 months. Maximum Drawdown shows the maximum loss from peak to a through of a portfolio, before a new peak is attained. 9

10 Origo Quest 1 Positive performance spread in 9 out of the last 12 quarters * Performance spread between longs and shorts, no allocation effect, gross of fees 10

11 Origo Quest 1 Recent Awards * Awards, Ratings & Nominations

12 Origo Quest 1 High lights from 2017 Net return: +2,2%, below our long-term trend and below target AuM increased to 762,2 (+54%) The market was driven by Large Cap/ Cyclicals. Small Caps peaked already in June Balanced risk profile with a net exposure of ~ 35% and a beta of ~ 0,3 Positive alpha from Shorts, negative from Longs* Long holdings Alpha Short holdings Alpha CSX Return Strong operational turn around in Qliro, and a successful spin-off of Nilfisk from NKT Enea is in transformation-mode and had a weak development ,8 16,3-12,8 13,7 26, ,6 13,8-12,1 0,7 12, ,4-5,0-5,4 3,0 8,4 * Alpha is a measure of the active return on an investment relative to a suitable index. 12

13 Origo Quest 1 Stringent value creation model Strengthen existing products Introducing services Use new technology Industrial segments Geographies Channels Structure portfolio Spin-off underachievers Optimize capital structure Corporate governance Share holder value focus Profitability, cash flow 13

14 Case study Gaming / Cherry Initial investment H Growth in Online Acquisitions Market Cap 300 MSEK, Sales 250 MSEK Small gaming conglomerate, overlooked stock Close contact with management Great transformation & growth potential Spin-off of Yggdrasil Listing 14

15 Case study Cherry Strong execution on most value drivers Strengthen existing products Introducing services Use new technology Yggdrasil Platform isense 2,0 Industrial segments Geographies Channels Acq JPC Acq Game Lounge Acq ComeOn! +10% Organic growth in old casino Structure portfolio Spin-off underachievers Optimize capital structure Listing on Nasdaq o Yggdrasil E* Corporate governance Share holder value focus Profitability, cash flow New CEO More efficient cost structure Closed down Klubblo Developed a partner model * Origo s view Feb

16 Case study Cherry: Fundamental Change drives value % since initial investment Sales from 300 MSEK to MSEK Close contact with management Opportunistic buy/sell-strategy Half of the position has been hedged since July 2016 Significant outperformance vs NetEnt/ Kindred since initiation of pair trade 16

17 Summary Proven strategy in an attractive market Quest will not deliver index performance in the short term, because we have no desire to look like the index Proven and successful strategy Experienced team all aligned with the strategy The Nordics: Great investment opportunities Quest will not deliver index performance in the short term, because we have no desire to look like the index 17

18 Please contact us or your financial advisor for more information. Thank you! Anders Nilsson, IR 18

19 Appendix 19

20 Investment managers with smaller funds clearly outperforms Source: Infusion Global Partners and Eureka hedge funds with AuM below 100 MUSD vs 364 funds with +500 MUSD, year

21 Disclaimer This document produced by Origo Capital contains general marketing information about its investment products. Although the content is based on sources judged to be reliable, Origo Capital will not be liable for any omissions or inaccuracies, or any loss whatsoever which arises from reliance on it. If Investment research is referred to, you should if possible read the full report and the disclosures contained within it, or read the disclosures relating to specific companies found on Information relating to taxes may become outdated and may not fit your individual circumstances. Investment products produce a return linked to risk. Their value may fall as well as rise, and historic returns are no guarantee of future returns; in some cases, losses can exceed the initial amount invested. Where either funds or you invest in securities denominated in a foreign currency changes in exchange rates can impact the return. You alone are responsible for your investment decisions and you should always obtain detailed information before taking them. For more information please see inter alia the simplified prospectus and information brochure for the fund available at If necessary you should seek advice tailored to your individual circumstances from your bank advisor. 21