INVESTMENT PHILOSOPHY

Our investment selection is made in accordance with traditional fundamental analysis. Our funds are actively managed.

Prior to each potential investment, we conduct an analysis of the company concerned, where we make an assessment of what we believe is a long-term stable earnings level. We adjust for what, in our opinion, represents short-term excess profitability or poor profitability. We combine this with an assessment of the company’s future growth prospects to establish a long-term fair value of the entity and its share. We compare this with the current share price, and then we either invest or refrain from investing.

If we reach the conclusion that the fair value is significantly above the current market value our next step is to identify the reasons for the divergence in valuations. Is it company, sector or country specific? If we cannot find a reason we might have missed something in our analysis.

Provided we have identified why the factors behind why current market value does not reflect the fair value, the last step before investing is to identify potential triggers for a revaluation of the stock. We will not make an investment until we see that the factor or factors weighing on the stock have changed.

Tundra Fonder has no restrictions on what proportion of the portfolios may be invested ”off benchmark”. This also means there will be times when we fall behind our competitors. Daring to take the risk of ”being wrong”, not only in individual quarters, but even years, is essential for success in creating good long-term returns, we believe. Tundra Fonder’s products are not for investors seeking short-term stable returns, nor a return in line with an index. Such investors are better off investing in one of the successful hedge funds or in an index fund.

Owner policy

The Company shall act exclusively in the joint interests of unitholders. The objective of management is to achieve the highest possible return while observing the fund’s investment strategy and risk and the sustainability aspects that the Company considers in its management. To ensure the capacity to act independently and avoid insider situations, employees of the Company do not accept directorships in the companies in which the Company invests.

The Chief Investment Officer and the Chief Executive Officer jointly determine whether the Company will exercise its voting rights at general meetings or participate in nominating committees. The Company does not intend to participate in board activities, which is meant to ensure the Company’s independence from the company in the investment decisions the Company may need to make to protect the interests of unitholders.

In isolated, exceptional cases, the Company may decide to depart from the basic principle stated above, provided that its board of directors deems such action to be in the interests of unitholders.

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Employees

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