Advice Capital Vision Fund launched 1 December 2018
AC Vision Fund mandate is global, absolute return, long term and 'Growth At Reasonale Price' investment approach. The objective is to identify multi-baggers, and hold on. This is applied by focusing on business areas with structural tailwind.
Only a few percentage points of all companies ever get to be multibaggers, but they are quite often easy to see based on clear business focus, good and disciplined management and not least growing in a profitable way.
THE KEY INVESTMENT VIEW
Since the financial crisis in 2008 the global economy and financial markets have been on a diet of free steroids provided by central banks and politicians pushing the pedal with fiscal and monetary stimulus. The Covid-19 situation has made this even more clear.
The 2020s decade will likely be characterized by modest economic growth due to low population growth, low inflation (but that can change) and 1-2% productivity growth. In such a scenario the most promising growth pockets seems to be;
Digitalization of almost anything. Exponential growth in data and how its collected, sorted and analysed. And then used to optimize processes, flows and decision making. 20% of global stock markets are assigned as 'tech'. In 2030 'digital enablers' will likely constitute close to 50% of global market cap as data/knowledge gets embedded into business conduct
Low carbon world with renewable power, new forms for energy storage, food chains, transportation and digitalization optimizing the use of global ressources and the footprint using them
Healthcare efficiency and many more diseases being curable and preventable. Diabetes, cancer, cardiovascular and other large disease areas will see new treatments in 2030, which reduce the consequences and frequency as genomics, prevention monitoring and advanced individualized treatments gets to be common
Global affluence with 160 million individuals joining the global middle class on an annual basis (that's more than 400.000 individuals every day). That creates multi-year increased demand for better food, water, electricity, transportation, communication, energy, education and health
The traditional business and inventory cycle still applies, so from period to period growth and inflation will change. However, in a world with evermore data and analytics the efficiency of eco systems will likely reduce the magnitude of economic swings as end-to-end value chains reduce slack and inefficiency.
Risks of financial mis-allocation of capital is the same as past decades.
The investment proces is GARP i.e. growth/profitability/
valuation triangulation must justify the investment exposure.
And obviously, good stewardship and ESG applies to the companies invested in.
AC Vision Fund is long only, absolute return focused. This is suitable for the parts of the portfolio focused on growth companies at reasonable valuation i.e. long term capital accumulation
AC Vision Fund is an 'AIF' (Alternative Investment Fund) with minimum 100.000€ investment. Regulated by Danish FSA.
Danish, EU and Norwegian domiciled investors only.
NO CURE, NO PAY
Fee structure is 0.00% fixed fee, 20% performance fee, high water mark.
An entry and exit fee applies
ABOUT ADVICE CAPITAL
Advice Capital is a Copenhagen-based equity fund boutique with 4 funds. www.advicecapital.eu