Time for investors to ‘tuck in’ to equities, urges Skagen founder
Kristoffer Stensrud, who helped found Norwegian asset manager Skagen, has told a meeting of investors in its home town of Stavanger that the next 12 months will be like a “Christmas buffet” for equity investors.
The outlook represents a turnaround of sorts as the manager previously was slightly wary of opportunities that could be hit by Europe’s ongoing sovereign debt crisis.
However, the most recent action of the ECB in serving up cheap money for Europe’s banks, may be the trigger for better opportunities, says Dagens Nærringsliv, which reported the meeting.
“This is quantitative easing in a subtle European way,” he said.
Improvements in dry bulk shipping rates and copper prices are also identified as signals of a more robust global economy.
Stensrud, like many equity managers, had a tough 2011. However, his performance in an annual stock picking competition – in which he competes against Petter Hermanrud of First Securities to select five stocks for a synthetic portfolio – saw him eke out a return of 1% against the -12% fall of the overall Norwegian stock market thanks to picking Golar LNG.
For the coming year, Stensrud’s competition portfolio is positive on three shipping owned by Norway’s richest man John Fredriksen – Golden Ocean, Frontline 2012 and Archer – as well as Siem Offshore and Gjensidige Forsikring.
Other domestic firms seen as offering good investor opportunities through 2012 include Goodtech and airline Norwegian.