Advice Capital Vision Fund was established in November 2018.
Ole Søeberg is a board member and advisor to AC Vision Fund and one of the main holders.
AC Vision Fund mandate is absolute return, long term focused in order to capture a well tested multi-year, multi bagger investment practice, which has been developed since initial investments in 1980s. Multi-baggers takes time and only a few percentage points of all companies ever get there, 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. Key examples are Apple (2003), ASML (1998 and 2010), Microsoft (1987, but sold way too early), Novo Nordisk (1990), Royal Unibrew (2009), Tomra (2006) and Samsung Electronics (1997).
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 via fiscal and monetary stimulus.
This in turn has led the 2010s to be the decade for bond proxy companies (stable earners with no financial leverage and solid dividend policy) and global digital titans with high earnings growth
The next decade will likely be characterized by modest economic growth due to low population growth and 1-2% productivity growth. In such a scenario the most promising growth pockets seems to be;
1. Global affluence with 160 million individuals (435.000 every day) joining the global middle class. Huge need for better food, water, electricity, transportation, communication, energy, education and health
2. 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 areassigned as 'tech'. In 2030 'digital enablers' will likely constitute close to 50% of global market cap
3. Low carbon world with renewable power, new forms for energy storage, food chains, transportation and digitalization optimizing the use of ressources and the footprint using them
4. Healthcare efficiency and many more diseases being curable. Diabetes, cancer, cardiovascular and other large disease areas will likely see treatment in 2030, which is not available in 2020. And big moves in prevention via digital monitoring of individuals health situation
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.
In a investment world with profile listed above Advice Capital Vision Fund focus on identifying companies and business clusters with unique structural growth characteristics.
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 individuals, family offices and pensions and in the parts of the portfolio focused on growth companies at reasonable valuation i.e. long term capital accumulation
AC Vision Fund is an 'AIF' and 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