Strategy portfolio
Johan Widmark
We believe in growth
Incirrata's model portfolio is designed for maximum return at reasonable risk. The strategy is based on a combination of momentum, volume and fundamental analysis based on a couple of basic assumptions.
- For political and structural reasons, the Swedish krona can be expected to continue to weaken. For those who want to maintain the purchasing power of their capital, it is therefore good to have a high proportion of foreign shares.
- The US has a number of geographical, structural and geopolitical advantages that will make US companies winners in the future as well. Read more about our view of the US here.
- The last decade's asymmetrically high value creation in the technology sector is expected to continue and justifies an overweight to the sector.
- The EU has several structural, demographic and competitive challenges that justify an underweight in European equities.
- For a good spread of risk and exposure to uncorrelated returns, smaller parts of emerging markets and commodities are included.
- As inflation protection, a small amount of gold and bitcoin is included in the model portfolio.
Development
As of 19 Dec 2024, the strategy portfolio is up 96%* in five years. This can be compared with the index fund MSCI Sweden, which increased by 30% during the same period.
96%
Return 5 years, as of 2024-12-19,
compared to 30% for MSCI Sweden
Good risk-adjusted return
0,88
with 0.33 for Avanza Zero
The Sharpe ratio measures the risk-adjusted return for a portfolio. A higher Sharpe ratio indicates better risk-adjusted performance and reflects higher returns for the risk taken. The strategy portfolio's Sharpe ratio of 0.88 can be compared with one of Sweden's most popular funds Avanza Zero at 0.33.
Distribution
35%: USA distributed among selected funds with exposure to Nasdaq 100 (15%), S&P 500 (10%) and US small companies (10%).
20%: The Nordics in selected broad funds.
20%: Emerging markets in selected fund.
15%: Nordic dividend shares in selected fund.
5%: Gold in selected fund with physical assets, not producers.
5%: Crypto assets, Bitcoin respective Crypto Top 10 by Virtune.
71%
Positive months
Read more here
Stock portfolio: Quality
The Incirrata Quality share portfolio is based on a quantitative screening to capture high-quality companies with stable growth and profitability, with a healthy balance sheet and return on capital, with an acceptable cash flow valuation.
Theme portfolio
Incirrata's thematic portfolio consists of 10 funds and ETFs selected according to 10 growth themes: AI and Technology, Aging Population, Space, Gaming & eSports, Global Healthcare, Chip & Semiconductor, Crypto and Cybersecurity. The portfolio has a Sharpe of 1.0 and annual average return of 21% per year.
Why US stocks?
The USA is not only the world's leading economic and political superpower but also the one that holds the greatest opportunities. With a unique combination of democracy, structure, military might, and entrepreneurial spirit, the country has repeatedly demonstrated its strength. However, one often overlooked factor is its unique geography – providing American companies with unparalleled conditions to continue succeeding.
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Disclaimer
This marketing document has been issued by Incirrata AB. It is not intended to be distributed to, published for, made available to or used by individuals or legal entities that are nationals or residents of any state, country or jurisdiction where applicable laws and regulations prohibit its distribution, publication, making available or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is for informational purposes only and shall not be construed as an offer, a solicitation or a recommendation to subscribe, purchase, sell or hold any security or financial instrument or to enter into any other transaction, such as the provision of investment advice or services, or as a contract document. Nothing in this document constitutes investment, legal, tax or accounting advice or a guarantee that any investment or strategy is suitable or appropriate for an investor's specific and individual circumstances, nor does it constitute personal investment advice to any investor.
This document reflects information, opinions and comments from Incirrata AB. at the time of its publication, which are subject to change without notice. The opinions and comments expressed by the authors in this document reflect their current views and may differ from conclusions in Incirrata AB's services or products, or third parties, who may have reached other conclusions. Market valuations, terms and calculations stated here are estimates only. The information provided comes from sources believed to be reliable, but Incirrata AB does not guarantee its completeness, accuracy, reliability or timeliness. Historical performance does not provide an indication of or guarantee of current or future performance. Incirrata AB assumes no responsibility for any loss arising from the use of this document.