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2016 July Newsletter

Zach Liggett, CFA®
By: Zach Liggett, CFA®

A Less Direct Route to Private Equity Exposure

“University of Michigan to invest $126 million in four global private equity funds” was a headline that recently popped across my Bloomberg terminal. Skimming through the article, I discovered that the new Wolverine investments would be deployed in private companies throughout Latin America, Asia, and Europe. Wow, I thought, this move isn’t all that different from some of the portfolio moves we’ve made over the last year. Private companies, you ask? That’s correct. Although, as I’ll discuss below, we’ve chosen a less direct route to build such portfolio exposure. 

Broadly defined, private equity investments are those made in operating companies that are not publicly traded on a stock exchange. Strategies focused on private equity run the gamut, but the primary subcategories include leveraged buyouts (LBOs), growth capital, distressed investments, and venture capital. The first three of these strategies generally involve investments in more-mature private companies (investments that fund acquisitions from current shareholders in the case of LBOs, expansion capital for an existing ownership team, and financing for a “rescue” or turnaround situation). The last subcategory, venture capital, involves investments in earlier-stage companies. These include startups, where financial track records or stable revenue streams have yet to be established. In most cases, private equity investors seek to actively add value to their portfolio companies and eventually prepare them for a “liquidity event” in which they can realize returns on their efforts. These events include things like the private sale of a company to a strategic buyer and the listing of a company on an exchange via an initial public offering.

Private equity deals, for a variety of reasons (many of which are regulatory in nature), are typically only made available to institutional or high-net-worth investors. Most offer their investors very limited liquidity (that is, you can’t access your funds for long periods), so they are generally only appropriate for investors with long-term (>5-year) time horizons. The allure of private equity, for those who can access this asset class, is a broader opportunity set and potentially greater expected returns than those available in traditional stocks and bonds. As such, many of the country’s largest institutions make private equity a key piece of their portfolio allocation pie.

In the case of U of M’s $10 billion endowment, the ninth largest among all universities nationwide, what’s classified as private equity and venture capital accounts for over 25% of its overall asset mix (see Figure 1). 

Although our team is regularly pitched different private equity fund offerings, we generally prefer to gain exposure to this asset class via publicly listed investment and holding companies. We believe that this gives us the best of both worlds in that we can access LBOs, growth capital, distressed, and venture capital “deals” without having to accept the illiquidity tradeoff. This “piggyback” strategy with established listed holding companies also enables us to benefit both from the highly specialized due diligence teams and from access to deals inherent in such investment companies. 

For a closer look at our approach, Figure 2 illustrates some of our recently held portfolio positions with meaningful private equity exposure. Our investor spotlight this month features a deeper dive into one of these names, Sweden-listed Investor AB. The others, which I’ll highlight below, cover a wide range of geographies, sectors, and private equity subcategories.

Dundee Corp.

Dundee Corporation, one of FIM Group’s “deep value” investment company holdings (i.e., a portfolio position trading far below our estimate of its sum-of-parts), consists of approx-imately one-third listed holdings and two-thirds private equity investments. The latter includes an eclectic mix of venture capital, growth capital, and turnaround situations, including TauRx Pharmaceuticals (a neuroscience company working on Alzheimer’s cures) and Blue Goose Capital (an organic beef, chicken, and fish producer). Part of Dundee’s current corporate strategy is to bring several of its more mature private equity holdings to liquidity events. This, management hopes, will help “prove” the value embedded in its portfolio (and not currently reflected in its share price). In the case of Blue Goose, Dundee announced back in February that it is working on a transaction that could see the company listed later this year.

A French Duo

Wendel Corp. and FFP Group are a pair of France-listed holding companies that, like Dundee, also combine listed companies and private equity investments in their portfolio mix. Wendel’s strategy has taken on more of an international flavor since 2013 and now includes top-tier, private companies like IHS, the leading provider of telecommunication tower infrastructure for mobile phone operators in Africa. IHS has been growing at more than a 20% annual rate over the last five years and now manages more than 23,000 towers across five African countries. 

FFP Group, the investment vehicle for the Peugeot family, generally makes minority stake investments in other family-owned companies. These hold-ings complement its long-standing 10.4% stake in PSA Peugeot Citroen group. Given its automobile legacy, it should come as no surprise that one of its private equity holdings is an invest-ment in Sanef, the France motorway operator that was privatized in 2006. Sanef runs a network of roads with highly strategic locations, including four of the six highways providing access to Paris.

HHVC

Harris and Harris Group (H&H) focuses largely on providing venture capital to technology and life science companies. D-Wave Systems, for example, is a firm started in 1999 that develops super-conducting quantum computers for the likes of Google, NASA, and Lockheed-Martin. These computers, which are rented for millions of dollars each per year, aim to tackle complex pattern recognition, logistics, and optimization challenges that ordinary computers simply lack the power to efficiently solve. 

Another H&H portfolio company, Metabolon, is an innovative company focused on metabolomics, or the study of the small molecules underlying all biological systems. It combines diagnostics and data processing technologies to advance developments in areas like precision healthcare.

For example, its QUANTOSE IR is a laboratory-developed test that measures insulin resistance and may be able to better diagnose prediabetes in patients. 

VinaCapital

Vietnam is a frontier market where we believe the long-term prospects are quite bright. A young, well-educated work-force, strengthening trade relationships with major economies like the U.S., and a government gradually turning more market-oriented are just three of the “macro” reasons we are looking for investment opportunities there. With London-listed VinaCapital Vietnam Opportunity Fund (VOF), we believe we’ve found a good partner to expose us to high-quality, reasonably priced investments in that country. 

With a still relatively undeveloped public equity market, VOF looks to private equity deals for part of its portfolio mix. Management has recently been shifting more of its portfolio “pie” from real estate to private equity, so we expect this weighting (now about 15%) to grow over the next few years. An example of the kinds of private equity investments VOF looks for can be found in An Cuong Woodworking. An Cuong manufactures a wide range of wood and laminate paneling, flooring, and furniture with a strong commitment to sustainable environmental and social practices. With VOF’s growth capital injection and managerial expertise, An Cuong expects to take its current $70 million business to the next level.

I hope it’s clear that our team agrees with University of Michigan’s and other leading endowment funds that global private equity investments can improve a portfolio’s diversification and return profile. Regulatory constraints and tricky access to deals can make finding suitable investments in this area challenging. With publicly traded holding companies like the ones noted above, however, we can gain ownership in world-class private companies. And, unlike the traditional route to private equity, we can do so while maintaining the flexibility to sell, should conditions warrant.

Alice McDermott, CFP®
By: Alice McDermott, CFP®

Pass the “Giving Torch”

For the past two years, I have mentored the Rotary “Interact Club” at the local high school. The primary goal for these 30 to 40 students is to collectively give their time and energy through serving the community. Over the past year the students donated a combined 300+ hours helping various organizations raise money and awareness for local charities. In addition to volunteering time during their busy school schedules, they raised $675 for Heifer International via a school-wide fundraiser. In addition, the local Rotary Club, which supports Interact, matched this for a total of $1,350! These funds purchased the following for underdeveloped countries:

1 biogas stove; 1 heifer; 1 water buffalo;
2 llamas; 1 tree seedling; 1 hive of honeybees; 1 flock of chicks

>span class="s1">Passing the “giving torch” is one of the greatest gifts we can instill in our youth. Most equate giving to monetary donations, yet giving our time and talent can also be rewarding and just as effective.  Teaching this at a very young age (as early as age 4 to 5) instills a behavior they will carry through the rest of their lives. I’m a Rotarian of almost 20 years, and my children have served a variety of organizations, including the Maui Food Bank, the Maui Humane Society, the Ka Hale A Ke Ola Homeless Resource Center, the School Supply Drive, and the Bailey House Museum. Mind you, they rarely went willingly, as “serving others” was and is not considered a good use of time for a young child, especially a teenager – most prefer socializing, going to the beach, or being plugged in to a favorite electronic device. Today I’m happy to say they choose to give their time to various charities in their communities. Getting them to this point was no easy task, yet witnessing the outcome has been well worth the effort!

For those with little to no time to share, monetary donations are also needed to allow many wonderful charities to do good work on their behalf. There are a variety of ways I encourage clients with philanthropic intentions to consider: an outright donation of cash, highly appreciated stock (to avoid paying capital gains tax), or for those over 70½ a portion or all of their RMDs (Required Minimum Distributions from IRA accounts). For age 70½ and older individuals fortunate enough to have “required” income (up to $100,000) they don’t need, donating some or all of this directly to one or more IRS-approved charities can offset above-the-line adjusted gross income, which may provide greater tax savings over outright donations of cash or stock. 

Regardless of the form of your donation, I suggest you involve your child, grandchild, a niece, or a nephew. Instead of a material gift, suggest he or she think of a charity they would like to donate to, and make the donation on their behalf. Perhaps even double the donation by matching what they’re willing to give from their own pocket. In our family we donate a specified amount every year to one or more charities and involve our children in the selection process.

Of course, seeking the guidance of a professional tax preparer, or one of our Certified Financial Planners, is highly recommended before deciding which donation is most beneficial. If you have any questions about charitable donations, or need assistance with planned giving, please call our office to schedule an appointment.

Understand that the intent of this article is not just about “giving.” Rather it’s about getting our youth involved in the process, and instilling the value and joy of giving. By involving our youth, we teach compassion to those less fortunate, fill a need in the community, and pass the “giving torch” to future generations.

Investor AB

Investor AB (Ticker: IVSXF, investorab.com,
Wallenberg.com, Bloomberg, economist.com, ft.com)

Share Price | Market Capitalization
06/20/2016 275.60 SEK | 212.495B SEK | SEK/USD = 0.121059 | USD/SEK = 8.2602

André Oscar Wallenberg founded Stockholms Enskilda Bank (SEB) 160 years ago. It was 1856, and the 30-year-old naval officer had just returned from the United States with an entrepreneurial spirit, plus a book on banking. That’s is how this story begins.

During a multidecade financial crisis, the option to force liquidations of various industrial companies was presented to him; time and again, the challenging decision to instead take on active ownership at these firms was the course set. At one point the Wallenbergs employed 40% of Sweden’s industrial workforce – with their companies valued at roughly 40% of the entire Swedish stock market. Today their companies still make up nearly one-third of the Swedish stock market. 

Now the fifth generation carries on the Wallenberg legacy via Investor AB, FAM AB, and various family foundations. A triumvirate of sorts – descendants Jacob, Peter, and Marcus – have split their roles, each taking on different aspects of the family business. All the while they have worked together setting the foundation for the sixth generation to carry the torch.

The Wallenberg Family has recently been described as “convivial and modest,” worth perhaps a billion dollars but actually in control of hundreds of billions. Family foundations typically hold their wealth and keep individual aspirations in check, paying out 80% of their distributions for charitable purposes. The Wallenbergs plan to give roughly $250 million to scientific research and education each year, and have in fact given a whopping $3.25 billion since 1917.

The family’s guiding principles have been honed with each successive generation. A few of their key philosophies are worth mentioning in detail: 

  • Sweden shall always be the core, or “landsgagneligt”; grants and activities should be to the benefit of Sweden as a whole. 
  • “Esse non videri,” there is a focus on long-term – sustainable – action.  
  • “To move from the old to what is about to come is the only tradition worth keeping” is a belief that one mustn’t fight greater trends but instead should go with them. (This instance relates to the founding of Scandinavian Airlines vs. deploying more capital into railroads – a prescient idea.) 
  • “No business is so bad that it cannot be put back on its feet with the right leadership, but no business is so good that it cannot be destroyed by a bad leader.”
  • To the extent that members of the family have active ownership positions in entities that can be leaders in their respective industries, then a clear goal can be pursued of “excellence in research” and continued investment to improve at all levels.

Investor AB is their primary loci, consisting of 20 core holdings: 

Atlas Copco – Stockholm, Sweden – ATCOA SS

  • “Provides compressors, vacuum and air treatment systems, construction and mining equipment, power tools and assembly systems
  • “Atlas Copco has world-leading market positions as a provider of sustainable productivity solutions, and a strong corporate culture. The company has best-in-class operational performance and has generated a total return significantly higher than its peers. Strong positions in key growth markets, and world-class aftermarket operations, have been instrumental to the historical performance. Going forward, the strong market positions, the flexible business model, and a focus on innovation provide an excellent platform for capturing business opportunities, also in the current low-growth environment. The strong cash flow allows for both substantial capital distribution to shareholders and flexibility to act on attractive growth opportunities.”
  • $31.40B Market Cap | $12.12B Revenues 2015 | $1.95B Free Cash Flow 2015
  • FIM Group estimates Atlas Copco to be: ~14.48% of Net Asset Value, or 58.30 SEK/Share

BB – Zurich, Switzerland – ABBN VX

  • “Provides power and automation technologies for utility and industry customers
  • “The power and automation industries are attractive and benefit from structural growth drivers such as investments in smarter electricity grids as well as increased energy efficiency and productivity in industrial processes. ABB is well positioned due to its broad industry and geographic presence, leading product portfolio, and strong market positions. There is nevertheless room to improve ABB’s customer focus and cost efficiency. The company needs to execute on current strategic initiatives and continue to invest for the future. ABB’s balance sheet is strong, supporting further investments in growth as well as attractive distribution to shareholders.”
  • $48.61B Market Cap | $35.48B Revenues 2015 | $2.94B Free Cash Flow 2015
  • FIM Group estimates ABB to be: ~13.11% of Net Asset Value, or 52.78 SEK/Share

SEB – Stockholm, Sweden – SEBA SS

  • “A financial services group with main focus on the Nordic countries, Germany, and the Baltics
  • “SEB continues to focus on deepening customer relationships across its geographies and expanding within the savings and pensions area. Operating leverage has increased, alongside a strengthened balance sheet. Nonetheless, sustained capital and funding efficiency will remain essential in the new regulatory environment and to support sustainable and competitive returns. In addition, investments in digital platforms and competencies will be necessary to drive continued operational efficiency as well as improved customer experiences. We believe that SEB is well prepared to navigate the banking landscape of tomorrow.”
  • $20.30B Market Cap | $5.81B Revenues 2015 | 21.30% Tier 1 Capital Ratio 2015
  • FIM Group estimates SEB to be: ~11.82% of Net Asset Value, or 47.60 SEK/Share

AstraZeneca – London, UK – AZN LN

  • “A global, innovation-driven, biopharmaceutical company
  • “AstraZeneca faces patent expirations for some key products in the coming years, which makes continued strengthening of the research pipeline and bringing new innovative products to the market highly important. AstraZeneca has made encouraging progress, and the coming two years will be important in terms of late-stage pipeline results. It is also important that AstraZeneca continues to strengthen its presence in emerging markets and strive for operational excellence.”
  • $71.39B Market Cap | $24.71B Revenues 2015 | $2.12B Free Cash Flow 2015
  • FIM Group estimates AstraZeneca to be: ~8.26% of Net Asset Value, or 33.25 SEK/Share

Ericsson – Stockholm, Sweden – ERICA SS

  • “Provides communications technology and services
  • “Mobile data traffic continues to grow significantly, and Ericsson is well-positioned to support telecom operators in managing this development. At the same time, Ericsson’s earnings growth and total shareholder return has been weak in recent years. In order to secure good performance going forward, Ericsson must defend its strong market positions, ensure a competitive cost position, and realize a good return on the recent years’ investments in adjacent growth areas.”
  • $26.18B Market Cap | $29.29B Revenues 2015 | $1.45B Free Cash Flow 2015
  • FIM Group estimates Ericsson to be: ~3.78% of Net Asset Value, or 15.21 SEK/Share

Wärtsilä – Helsinki, Finland – WRT1V FH

  • “Provides complete lifecycle power solutions for the marine and energy markets
  • “Wärtsilä’s leading global market positions and large emerging market exposure provide an excellent platform for profitable growth. To counteract end-market cyclicality, the company has an asset-light business model focused on R&D and design, with in-house manufacturing of critical components. The sizeable aftermarket business provides earning stability in downturns and supports both marine and energy customers. We see strong long-term value potential driven by stricter environmental regulation, build-out of smart power generation, and increased penetration of natural gas-powered engines in the marine and energy markets.”
  • $8.45B Market Cap | $5.58B Revenues 2015 | $195.4M Free Cash Flow 2015
  • FIM Group estimates Wärtsilä to be: ~3.86% of Net Asset Value, or 15.55 SEK/Share

Swedish Orphan Biovitrum – Stockholm, Sweden – SOBI SS

  • “A specialty healthcare company developing and delivering innovative therapies and services to treat rare diseases
  • “In January 2016 Sobi launched Elocta (hemophilia A) in the first countries in Europe. Securing the full commercial potential of Sobi’s hemophilia assets is the key focus for the company. Continued focus on operational performance, extending the life of the existing products, and commercial agreements are also key near-term.”
  • $3.41B Market Cap | $382.9M Revenues 2015 | $60.2M Free Cash Flow 2015
  • FIM Group estimates Swedish Orhpan to be: 3.92% of Net Asset Value, or 15.77 SEK/Share

Nasdaq OMX – New York, NY, U.S.A. – NDAQ

  • “Provides trading, exchange technology, information, and public company services
  • “Nasdaq has leading market positions and a unique brand in an industry we know well. An exchange is at the core of the financial system, and we believe that more financial products will be traded on exchanges, supported by increased digitalization of trading. Nasdaq has strengthened its nontransactional business, such as corporate solutions and information services, increasing the share of recurring revenue and resilience. We see expansion into new asset classes, geographies, and adjacent businesses as some of the main drivers for continued value creation. Nasdaq’s strong cash flow supports continued growth initiatives as well as attractive shareholder cash distribution.”
  • $10.6B Market Cap | $3.4B Revenues 2015 | $552M Free Cash Flow 2015
  • FIM Group estimates Nasdaq OMX to be: ~3.43% of Net Asset Value, or 13.80 SEK/Share

Electrolux – Stockholm, Sweden – ELUXA SS

  • “Provides household appliances and appliances for professional use
  • “The global appliances industry is highly competitive due to moderate growth in mature markets and a tough industry structure. The long-term growth potential in emerging markets is, however, high, supported by a fast-growing middle class and increased appliance penetration. Industry margins are low, but returns are healthy thanks to high capital turnover. For Electrolux, we believe that progress is becoming visible and we see good potential for a higher long-term operating margin. To achieve this, it is critical to ensure that the turnaround of the European operation is sustainable and to restore profitability in the North American business.”
  • $8.53B Market Cap | $14.65B Revenues 2015 | $981M Free Cash Flow 2015
  • FIM Group estimates Electrolux to be: ~3.71% of Net Asset Value, or 14.92 SEK/Share

Saab – Stockholm, Sweden – SAABB SS

  • “Provides products, services, and solutions for military, defense, and civil security
  • “Saab provides state-of-the-art products and is well positioned in many niche markets globally. With many defense budgets under pressure, Saab’s cost-competitive product portfolio becomes increasingly attractive. In light of the record-strong order book, successful execution on the large orders will be critical going forward. Continued operational efficiency is important to support internal R&D investments and marketing efforts in order to secure a strong platform for the future.”
  • $3.56B Market Cap | $3.23B Revenues 2015 | $427M Free Cash Flow TTM
  • FIM Group estimates Saab to be: ~2.96% of Net Asset Value, or 11.92 SEK/Share

Husqvarna – Jönköping, Sweden – HUSQA SS

  • “Provides outdoor power products, consumer watering products, cutting equipment, and diamond tools
  • “Total shareholder return for Husqvarna has been unsatisfactory since the spin-off from Electrolux, caused by weak markets for outdoor products and an unsatisfactory operational performance. However, over the last two years we have seen a significant improvement in profitability thanks to a clear focus on core brands and profit pools, a differentiation between the dealer and retail business models, and strong focus on operational excellence. The new organizational structure implemented in 2015 will increase business model differentiation further and increase end-customer focus. Near term, it is important to improve profitability in the Consumer Brands division. The company is well positioned for profitable growth with world-leading market positions, strong brands, and a global sales organization.”
  • $4.53B Market Cap | $4.29B Revenues 2015 | $241M Free Cash Flow 2015
  • FIM Group estimates Husqvarna to be: ~2.06% of Net Asset Value, or 8.29 SEK/Share

EQT – Stockholm, Sweden – Private

  • “A private equity group with portfolio companies in Europe, Asia, and the U.S.A.
  • “Our investments in EQT’s funds have proven very successful over time. Although ‘lumpy’ by nature, depending on whether the funds are in an investment or an exit phase, our investments in the EQT funds are expected to continue to generate strong net cash flow over time. We will continue to invest in EQT’s funds going forward.”
  • FIM Group estimates EQT to be: ~3.88% of Net Asset Value, or 15.63 SEK/Share

Mölnlycke – Gothenburg, Sweden – Private

  • “Provides single-use surgical and wound care products for customers, healthcare professionals, and patients
  • “With its strong market positions and its highly competitive product offering, Mölnlycke Health Care is well positioned to continue to deliver strong growth, profitability, and cash conversion. Continued focus on product innovation together with sales force expansion in existing and new markets creates a robust platform for continued profitable growth.”
  • FIM Group estimates Mölnlycke to be: ~15.81% of Net Asset Value, or 63.68 SEK/Share

Permobil – Timrå, Sweden – Private

  • “Provides advanced mobility and seating rehab solutions
  • “Permobil is a globally leading provider of advanced mobility and seating rehab solutions, with a strong dedication to improve the quality of life for its users. The company’s strong portfolio of brands, competitive product offering, innovation capabilities, and leading market positions provide a strong base to capture additional growth, both in existing and in new markets.”
  • FIM Group estimates Permobil to be: ~2.71% of Net Asset Value, or 10.92 SEK/Share

Aleris – Stockholm, Sweden – Private

  • “Provides healthcare and care services in Scandinavia
  • “Demographics and changing consumption patterns drive long-term growth in the Scandinavian healthcare and care market. Aleris has a strong market position and an attractive platform for growth. Delivering high-quality and cost-efficient service is the main differentiator for this business over the long term, which is why efforts to constantly improve quality and service for patients and payers are the top priorities. Although we have seen some improvement in profitability in 2015, we continue to see additional potential for improving performance.”
  • FIM Group estimates Aleris to be: ~2.06% of Net Asset Value, or 8.31 SEK/Share

BraunAbility – Winimac, IN, U.S.A. – Private

  • “Provides wheelchair-accessible vehicles and wheelchair lifts
  • “BraunAbility is the U.S. market leader in automobile mobility products for people with disabilities, with clear number one market positions within both Wheelchair Accessible Vehicles (WAV) and wheelchair lifts. The company has significant organic growth potential as its core WAV market is underpenetrated and benefits from sustainable, demographic growth drivers. There are also multiple opportunities for broadening the product portfolio and international expansion, which is in its early stages, as well as substantial upside in manufactur-ing efficiency. In addition, there are multiple nonorganic growth opportunities in and adjacent to the company’s core markets.”
  • FIM Group estimates BraunAbility to be: ~1.28% of Net Asset Value, or 8.31 SEK/Share

3 Scandinavia – Stockholm, Sweden – Private

  • “Provides mobile voice and broadband services in Sweden and Denmark
  • “3 Scandinavia has consistently grown by capturing market share in Sweden and Denmark. With strong cost control in place, future revenue growth should translate into enhanced profit and cash flow generation. High network quality and fair access to spectrum will continue to be key for 3 Scandinavia’s ability to provide superior services to a growing subscriber base.”
  • FIM Group estimates 3 Scandinavia to be: ~2.80% of Net Asset Value, or 11.27 SEK/Share

Vectura – Stockholm, Sweden – Private

  • “Develops and manages real estate, including the Grand Hôtel and Aleris-related properties
  • “We see opportunity to create value in Vectura by efficient real estate management and development. The company enables its customers to focus on its core business in well-adapted facilities, within healthcare, hotels, and offices. Vectura is investing in its organization to support accelerated growth.” 
  • FIM Group estimates Vectura to be: ~0.20% of Net Asset Value, or 0.80 SEK/Share

The Grand Group – Stockholm, Sweden – Private

  • The Grand Group consists of Scandinavia’s leading five-star hotel Grand Hôtel, and Lydmar Hotel
  • “Grand Hôtel and Lydmar Hotel have unique brands and locations. The two hotels have complementing brands, and we see the potential for additional synergies between them. The Grand Group has improved profitability during the past years thanks to strong growth and cost control. Focus going forward remains on revenue growth and continued improvement of operational excellence.”
  • FIM Group estimates The Grand Group to be: ~0.13% of Net Asset Value, or 0.51 SEK/Share

Financial Investments (Various)

  • Financial Investments consist of investments in which the investment horizon has not yet been defined. Our objective is to maximize the value and use realized proceeds for investments in existing and new subsidiaries. We are also evaluating if some holdings could become long-term investments.”
  • FIM Group estimates Financial Investments (Various) to be: ~3.50% of Net Asset Value, or 14.08 SEK/Share

Investor AB – Stockholm, Sweden – INVEA SS

  • ~30% discount to Net Asset Value - FIM Group estimates Investor AB to be worth ~400 SEK/Share vs. the current market price of 275.60 SEK/Share (06-20-2016)
  • 3.63% Dividend Yield

In addition, Investor AB pays what we believe to be a sustain-able/defensible dividend that, given their conservative nature, should grow steadily through market cycles. 

>span class="s1">Investor AB is now 100 years old, and FIM Group believes that the next 100 years can be just as prosperous as long as the Wallenberg family remains true to its principles. As always, we will remain diligent and keep an eye on management and its actions.

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