In an interview, Chief Executive Officer Hans Hedstrom said Stockholm-based Carnegie Fonder is again increasing its exposure to equities after having reduced it in the spring and early summer months. In particular, it recently added in SEB AB and Swedbank AB, following a selloff in the sector related to concerns over the fallout from alleged money laundering scandals at Swedbank and Danske Bank.
"The drop in their valuation has gone too far,” Hedstrom said. “We’re disappointed with Nordea however, from an operative viewpoint. The Nordea share has always been cheap and there is obviously a reason for it.”
Carnegie Fonder also sees potential in “cheap” industrial companies such as Volvo AB, SKF AB and ABB Ltd. “Perhaps not ABB, but Volvo and SKF could easily double in price” he said. “I can understand that they are being disregarded as the state of the economy is uncertain, but those times usually offer good opportunity to go against the trend.
”Global stock markets have been whipsawed over the summer months on growing concerns over an economic slowdown because of an escalating trade dispute between China and the U.S. Sweden, which relies on exports for almost half its output, has much to lose from a disruption to trade supply chains.
Sweden’s benchmark OMX index is down about 10 percent from a peak in late April. Banks stocks such as SEB, Swedbank and Nordea are down 3 percent, 37 percent and 21 percent so far this year.
Carnegie Fonder’s flagship Carnegie Strategifond has returned 15.5% this year, and delivered annual returns of 8.3 percent over the past five years. Hedstrom said he’s not overly worried about a widespread recession. Although there being “many things to worry about,” neither the U.S. nor China would benefit from growth in the world economy coming to a halt, he said.
“We’ve seen the signs of an economic downturn for a while now,” Hedstrom said. “I think stimulus in China and Germany will have a positive effect on growth figures.” Sectors that Carnegie Fonder is avoiding are biotech and pharmaceuticals as they are “risky and expensive.”
Already a subscriber? Log in.
Read the whole article
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.
- Access all locked articles
- Receive our daily newsletters
- Access our app
Get full access for you and your coworkers.Start a free company trial today
Your trial for AMWatch has now started
With your free trial you get:
Full access to all locked articles on AMWatch.
Daily newsletter and ongoing top-newsletters. You can unsubscribe and subscribe to our newsletters anytime.
When your trial period expires
You will not be transferred to a paid subscription.
You will continue to receive our newsletters after the trial period expires. You can unsubscribe at the bottom of each newsletter.