Concentrated Portfolio

Disclosure: I own many of the companies mentioned on this web page. The writing is my own, and it expresses my own opinions at the time of writing. I may change my opinion at any time. Additional disclosure: Not investment advice. I am not an investment adviser. You must take full responsibility yourself if you make any decisions based on what you read on this web page.

Update: Concentrated portfolio October 2020

This is my concentrated portfolio per 13/10/2020. The top three companies have cumulative weights of around 47 % of my portfolio, while he cumulative weight for the concentrated portfolio is 65.3 % (the diversified portfolio make up the remaining 34.7 %). The fate of the top three companies will clearly have a dominant effect on the portfolio as a whole. I have held these companies for a while, and I hope to hold them for a long time.

Since the last update in August, the concentrated portfolio is up around 15 %. I have not made any changes to the top three holdings, but all three companies did very well in this time period. Of the smaller posts, I have decreased my holding in Sparebanken Møre by 1/3, and increased my holding in Huddly with 50 %. I have also added two new companies: Vaccibody, after the deal with Genentech was announced, and Kid, which I continue to believe in (I owned Kid earlier, but sold this summer - a big mistake). I am still looking into selling some of the smaller positions.

Company Business Weight MCap Held since 10Y perf. 10Y CAGR YTD perf. Cost/sh Return
1 Bakkafrost Salmon farming 21.7 % 36.8 MNOK 12/2012 2,168,6 % 36.6 % 0.2 % 112.09 518.6 %
2 Apple Consumer products 15.2 %   2.1 BUSD 04/2015 1,243.4 % 29.7 % 71.9 % 37.27 238.5 %
3 Pareto Bank Project bank   9.9 %   2.8 MNOK 04/2014 2,716.9 % 13.8 % 3.1 % 28.11 65.1 %
4 Sparebanken Vest Savings bank   4.2 %   7.2 MNOK 09/2019 249.4 % 13.3 % 9.7 % 54.90 24.0 %
5 Huddly Video Cameras   3.0 %   2.7 MNOK 06/2020 542.9 % 121.51 85.2 %
6 Kraft Bank Bank   2.7 %   0.4 MNOK 09/2019 -13.1 % 8.04 24.4 %
7 Sparebanken Møre Savings bank   2.6 %   3.0 MNOK 05/2012 185.3 % 11.1 % 4.1 % 296.34 184.4 %
8 Hunter Tankers (crude)   1.5 %   2.0 MNOK 10/2019 -40.2 % 3.49 -29.2 %
9 Vaccibody Biotech   1.3 % 17.0 MNOK 10/2020 213.0 % 57.43 4.7 %
10 Kid Home interiors   1.3 %   3.8 MNOK 09/2020 365.5 % 36.0 % 100.0 % 81.72 8.4 %
Others (Hafnia, Norske Skog)   2.0 %
Concentrated Portfolio 65.3 % 132.4%

My total return (last column) is based on the following simplified measure: (market value of position + dividends + realized profits)/(historical cost price) - 100 % accumulated for each of the companies I own. Hence this is on a non-reinvested basis. I have reinvested, but not necessarily in the same company at the same time. I have usually built up the positions over time, and the time given in the table (Held since) indicates when I started buying. I use FIFO in my accounting, and use NOK as currency. Cost prices for US shares are expressed in USD using today's exchange rate. Maybe one day, I will move my book over from Excel to Python to create more accurate measures.

For the 10Y and YTD performance, I have used Yahoo Finance and Adj. close prices (adjusted for dividends and splits). In the case of Pareto Bank, which has not been a public company for 10Y, I have used my own price data going back to 31/12/2012 (from company presentations and data from NOTC), hence the performance for Pareto Bank is not 10Y but approximately 8 years and KID is approximately 5Y (I have adjusted for dividends and splits, for simplicity on a non-reinvested basis).

Next time I write, I plan to go write more about the companies in the diversified portfolio. You may follow me on twitter as @eivinderiksen and leave any comments you may have there.