lorentzen investments is an investment management firm founded by Thomas Lorentzen based in Bergen, Norway. With a focus on global equities, the firm takes a long-term, fundamental approach to investing and aims to generate sustainable excess returns for clients. Some key points about lorentzen investments’ performance, investment approach and strategies are highlighted below.
Strong Long-Term Returns with Moderate Volatility
lorentzen investments has delivered strong long-term returns for its clients, outperforming relevant benchmarks over 3, 5 and 10 year periods. For example, its Global Equity strategy has returned over 11% annualized over the past decade, outpacing the MSCI ACWI index. At the same time, the strategy has exhibited lower volatility than the benchmark. This demonstrates lorentzen’s ability to generate alpha while maintaining a moderate risk profile.
High Conviction, Concentrated Portfolios
lorentzen runs concentrated portfolios typically containing 25-35 stocks. This allows the investment team to have high conviction in each position and exploit their best ideas. lorentzen believes that a concentrated approach enables greater upside potential while also providing better downside protection in volatile markets.
Long-Term, Fundamental Focus
lorentzen investments takes a long-term approach to equity investing with a typical holding period of over 5 years. Their investment process is grounded in fundamental, bottom-up research centered around company business models, management quality, growth potential and valuation. lorentzen aims to invest in high quality companies trading at discounts to intrinsic value and let these investments compound over time.
Disciplined Sell Discipline
lorentzen employs a disciplined sell discipline to trim or sell positions. Stocks become sell candidates when the investment thesis changes, valuations become excessive, or better opportunities are available. This ensures portfolios are constantly upgraded and remain focused on lorentzen’s best ideas.
Focus on Risk Management
Risk management is core to lorentzen’s investment approach, guiding portfolio construction and management. Position sizes are based on conviction level and risk-return profile. lorentzen diversifies across sectors and regions, sets stop-losses, and monitors portfolio risk metrics. By integrating robust risk control, lorentzen aims to provide downside protection in turbulent markets.
In summary, lorentzen investments has generated impressive long-term returns for clients by pursuing high conviction, concentrated investing based on fundamental analysis with a disciplined risk management framework. Its long-term approach and ability to find quality companies position it well to continue generating alpha in global equity markets.