Our investment philosophy
We are an active fund manager, striving to deliver solid returns to our investors through active investment decisions. Our portfolio managers have a close relation to our clients' investments, and are continuously pursuing investment cases that will deliver the best long term returns.
Pareto Asset Management has always been a bit different. We have never been concerned with the short-term fluctuations in the stock market, and we are puzzled when strategists, analysts and advisors so easily predict how the market or oil prices will move. The market will fluctuate, and we do not know how. Oil prices will jump and bounce, we do not know where. Let's rather focus on what we know.
Einar Løvoll, Senior porfolio manager, Norwegian Equities
the five pillars
The five pillars of our investment philosophy
Active management
Our goal is to deliver good risk-adjusted returns. For benchmarked funds this entails a goal of beating the benchmark, which in turn requires independent choices and a high active share.
Security focus
We focus on individual securities in both stock and bond selection. Each security is chosen on our conviction that this particular security will deliver strong returns over time, not because of factors like geography or industry.
Fundamental
We evaluate company specifics like business model, operations, profitability, management and strategic outlook. We prefer to buy reasonably priced securities, yielding a margin of safety, but will not let pricing multiples decide.
Concentrated
We limit risk by gaining thorough knowledge of the companies in which we are invested, and by owning companies that, in total, provide a sensible risk exposure. For fixed income, traditional diversification is more important.
Long-term perspective
We seek long-term returns. In the long run, a company's fundamental value and profitability are more important than the purchase price. We will consider selling, however, if the long-term potential is exhausted in the short run.
Responsible investments
Active ownership
Pareto Asset Management shall exercise active ownership in the portfolio companies in order to promote responsible business operations.
This means that we will use our ownership rights and influence in the companies to help move the companies in a positive direction in terms of social relations, environmental issues, sustainability and good corporate governance.
Although it's easy to forget, a share of stock is not a lottery ticket. It's a part ownership of a business.