The former family-owned company had its roots in wholesale business and seafood exports but wanted to develop and take part in the consolidation of the industry.
The listing provided access to capital and the opportunity to make acquisitions by issuing shares. In the following years, the group invested significant amounts in farming, processing and sales of salmon and trout, as well as whitefish. Lerøy is thus, as they put it themselves, a fully integrated company with control and management of an entire range of seafood products from sea to consumer.
Acquisitions are often bad news for the shareholders. And seafood shares, even in more diversified companies, are very sensitive to changes in salmon prices. This has produced some difficult periods for shareholders, such as in 2011 and 2018-2020.
The managers of Pareto Aksje Norge have used some share price hiccups to trade shares, but never sold out of Lerøy.
Why so faithful?
A simple reason: They have had confidence in the business. With but a simple question, you may get a long corridor lecture on all sorts of operational details in Lerøy Seafood Group. That knowledge has given them confidence in the quality of operations, development and strategy.
Since the fund's initial investment, Lerøy Seafood Group has returned a total of 3,344 per cent, corresponding to 21.8 per cent a year. The share has thus contributed well to the return in the fund, which in the same period has been 722 per cent (12.4 per cent a year). In comparison, the mutual fund index has delivered 574 per cent (11.2 per cent).
Portfolio management team
Einar Løvoll
Lead portfolio manager / Discretionary mandates
Besim Zekiri
Portfolio manager / Discretionary mandates
Eirik Osberg Andresen
Analyst
Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on, market developments, the portfolio manager’s skill, the fund’s risk profile, as well as fees for subscription, management and redemption. Returns may become negative as a result of negative price developments. This is marketing communication.