Nyheder

05.09.2016

How to handle ever higher requirements to IR – attend NIRC

With investors having no claim for quarterly reports are the possibilities of evaluating company perforamnce and thus risk profiles the same? How will it affect share prices and will volatility be reduced?

Af: Ole Søberg, Portfolio Manager, Skagen Vekst

Risk is a very broad concept and can be split it into

  1. Permanent loss of capital (the real risk) and
  2. volatility factors i.e. events which create deviation of projected forward path, but are not vital to company survival.

Prudent investors split volatility into external and internal factors. The corporate reporting on the volatility factors should be relevant and preferably prioritized as well as management attention to the relevant factors being adressed in a credible way.

For risk adjusted returns SKAGEN funds operate with an ambition of 50 percent upside over a 2-3 year horizont and with an identified company specific downside of 20 percent. If an investment falls below 20 percent of the acquisition price, we need to do a full updated due dilligence.

Any listed company is valued every day so to get an edge and buffer of security, we need to see quite a significant valuation discount. Given all investors get the same information, but assesment method and time horizont is different then opportunities open up. The risk and volatility analysis is consequently a part of the overall accessment in order to cover as many relevant aspects of an investment it’s important to have easy access to the volatility factors.

Learn more about this topic by attending NIRC 2016 – Mastering investor relations in changing times.

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