Top Norway Stock Fund Is Cutting Risk in Shift to Defensives
Top Norway Stock Fund Is Cutting Risk in Shift to Defensives
(Bloomberg) --
The top Norwegian equity fund is shifting into defensive stocks as the market wobbles.
“This year it has moved from a cyclical to a more defensive tilt, but with a reaction in the past months,” Leif Eriksrod, head of equities at Alfred Berg Kapitalforvaltning AS, said in an interview on Friday.
In a year marked by concerns over trade war, Brexit and the specter of recession in developed economies, volatility across sectors has made it difficult for stock pickers, according to Eriksrod, who oversees about 13 billion kroner ($1.5 billion).
The fund has boosted its holdings in non-cyclical companies such as telecom giant Telenor ASA, online classifieds provider Adevinta ASA and real estate company Entra ASA. Telenor shares were down 0.7% at 12:01 p.m. in Oslo.
Alfred Berg Gambak is the top performing Norwegian fund over the past 10 years with an average annual return of 15%, according to Morningstar. It uses fundamental analysis while following trends and sentiment in the market.
But what looks smart one month can seem “very stupid” the next, according to Eriksrod.
“And you don’t manage to change your portfolio as fast as the market swings,” he said.
To contact the reporter on this story: Jonas Cho Walsgard in Oslo at jchowalsgard@bloomberg.net
To contact the editors responsible for this story: Jonas Bergman at jbergman@bloomberg.net, Stephen Treloar
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