The investment operations are built upon a structured process of continuous analysis of existing and potential new holdings. This is based on Industrivärden’s internal analysis (the so-called fundamental analysis), external research and on business intelligence in the form of macro, megatrend and capital market analyses.
Qualitative and quantitative goals as well as the investments’ long-term return potential are evaluated continuously. The investment operations continuously update
transaction plans which aim to optimize long- and short-term timing and the forms of potential stock purchases and sales. Corresponding plans are drawn up for new
investments or complete divestments.
Industrivärden aims to invest in listed Nordic companies with clear return potential, where it can exercise active influence through a strong, ownership-based position of trust. Industrivärden’s share of ownership should amount to at least 10% of the number of votes and enable board representation. For new investments, the portfolio company should have a minimum market cap of around SEK 3 billion, and for investments in companies with a market cap ranging from SEK 3-10 billion, an ownership stake of 20%-30% of the capital is preferable. This is to ensure that the investment’s potential return will make a tangible contribution to the equities portfolio as a whole.
Industrivärden continuously evaluates listed companies on the major Nordic stock markets and monitors all relevant IPOs in the Nordic region.
Investments are to be made in established companies in which Industrivärden can identify long-term, attractive return potential. The overarching investment criteria are:
- Clear potential for profitable growth
- Proven business model
- Good balance between risk and return
- Attractive valuation
Current investments – portfolio companies
The return potential for investments in the portfolio companies is evaluated on a continuous basis with a 3-5 year time horizon. Major emphasis is put on comparisons against a presumptive return potential for other investment alternatives, taking into account continuity and long-termism.
Stock market function
To enable professional asset management, Industrivärden has a stock market function that executes investment decisions, contributes market information and executes transactions. To capitalize on this resource and on Industrivärden long-term shareholdings, trading is conducted in equities and derivatives.