Competences that work together
At ODIN fund management we believe that good investment decisions are dependent on good judgment. And good judgment is only possible with the relevant expertise. We therefore believe it is important to continuously develop our competencies. Our experience shows that extensive collaboration and team work is key to enhance our expertise. As part of our approach, thefund managers and analysts challenge each other in a constructive way in order to reach common objectives. A new investment candidate will always be presented and discussed within the team of fund managers.
These reviews have two effects:
- The presenting fund manager is challenged by the team and thereby increaseshis / her understanding of the investment proposal, its potential risks and rewards.
- The challenging team will enhance their knowledge of the specific proposal and potential implications for other investment candidates or portfolio companies.
The portfolios at ODIN contain a limited number of investments. Limiting the number of investments in a portfolio enables our fund managers to compile in-depth knowledge of each and every investment. Each investment will therefore also make a significant contribution to the total return of the portfolio. Putting an upper limit to the number of holdings in the portfolio disciplines our fund managers in only choosing the absolute best investment opportunities. This results in our fund managers making thorough assessments of both return potentials and risk factors when making new investments. We believe concentrated portfolios lead to higher overall quality investments in our portfolios.
In order to identify the best investment opportunities we analyze all potential investment candidates in the same framework. Our investment analysis consists of three elements; performance, position and price.
- Performance: We always consider how successful a company has been at creating long term value.
- Position: We always consider if the parameters determining the companies´ competitiveness are sustainable and long term
- Price: We always conduct an independent assessment of what the company’s fair value is and compare that with the market price.
ODIN invests in companies that we believe are well positioned for long-term value creation. As a result, we have an investment horizon of several years. As a long term investor we spend time and resources on being a responsible owner of these companies. Our commitment as an owner has the objective to serve and underpin long-term value creation. It requires that the companies conduct business in a sustainable way and that the management teams are willing and able to prioritize long-term value creation.