Pareto published their strategic portfolio for September for Norway and Sweden. Below is the summary.
Pareto´s Norway Portfolio
US indices ended close to new all-time highs in August. Our portfolio was
no different, returning 4.8% m/m – a 4.1 pp outperformance to OSEBX
returning 0.7% last month. We remain ahead of the index for the year
having returned 26.0% YTD vs. OSEBX at 17.2%. Our best performers in
August were BONHR (+14.9%), ELK (+13.2%) and KID (+11.1%) and seven stocks beat the index. For September, we make six changes, replacing AFG, AKER, ELK, KID, MPCC and OHT with ACH, HAFNI, KIT, MWTR, SOON and SUBC, keeping AUSS, BONHR, DNO and NSKOG
Pareto´s Sweden Portfolio
After a strong month in July the Swedish equity market lost some speed
and traded largely sideways in August with our benchmark (OMXSGI)
gaining a modest 0.5%. S&P 500 wrapped up its seventh straight month
of gains driven by post-pandemic reopening and further economic
recovery. Our portfolio lagged our benchmark and declined 2.6% in
August, resulting in an underperformance of 3.1 percentage points. Only
3 out of 10 stocks in our portfolio closed higher for the month with our
tech holdings Embracer (-12%) and Storytel (-12%) continuing to drag on
performance. On a more positive note, both Sedana Medical (+11%) and
Renewcell (+10%) continued to trade higher. We make two changes for
September: we add Vicore Pharma and Green Landscaping and remove
Millicom and Xbrane.
My positions from the September portfolio
I am long NSKOG and Vicore.
I have written here several times why I believe NSKOG is due for strong rebound this year. Pareto made the following comment (emphasis addedd):
We keep NSKOG in our monthly portfolio as the earnings trough is left behind. And with increasing publication paper prices the
stock is a late cyclical play with substantial earnings and value upside. Earnings delta into H2 and 2022 remains positive, along
with several non-paper initiatives that will diversify and secure earnings growth – not yet reflected in the share price. As such, we think NSKOG is an attractive exposure with vast upside potential. BUY / TP NOK 50
Vicore Pharma is a new position. For those who follow the blog, the pharma track record was not bad. I posted over 100% return on Xbrane, earlier this year. The position is closed for now. Biovica is an open position with 50% return over the last six weeks. I am very bullish Biovica and believe there is additional 50% potential by October due to the announced FDA approval due in late September. Vicore is a new position, I will be writing about it in next days.