Swedish equity legend Mertzig’s fund grows strongly
Hans Mertzig, one-time manager of H&M founder the Persson family’s fortune, has seen his own Mertzig Equity Fund Sweden perform strongly again over the past month.
Mertzig made his name in the 1970s and 1980s as a manager at Carnegie.
Last year he started up his own fund when he ‘retired’ at age 68. Since the fund launched on 3 May 2010, it has returned 23.54% against the benchmark SIXPRX return of 15.46%, according to figures from the latest montly update published by local media. During April the fund gained 4.65%.
The Sek2.4bn (€264m) portfolio is highly concentrated on Swedish equity in companies such as Volvo and Ericsson. The focus on a smaller number of holdings that a typical Swedish equity fund means it is by definition higher risk, according to the prospectus document.
Neither is it a mass market investment vehicle. The minimum investment starts at Sek10m (€1.1m), with further investments starting at a minimum of Sek5m (€0.55m). Investors are cautiouned to accept a minimum investment time horizon of 5 years.
“Investors unwilling to accept large fluctuations in prices should not invest in the fund,” the prospectus states.
Mertzig Asset Management AB is the fund company that manages the fund. On March 18, 2010, it was authorised by the Swedish Financial Supervisory Authority to undertake regulated business.
Its chief owners are Hans Mertzig (36.5 per cent), his sons Magnus Mertzig (36.5 per cent), and Christian Mertzig (26 per cent) and Christina Börjesson (1 per cent).