Artificial intelligence has remained a dominant theme in global equity markets, delivering strong returns for companies exposed to the technology. SKAGEN Vekst has benefited from investments in these companies, including Samsung Electronics and Nokia. As share prices and expectations have risen, however, the portfolio managers have gradually reduced exposure where valuations offer less attractive potential returns relative to risk.
This reflects the fund’s value-driven investment philosophy, which has remained consistent since its launch 33 years ago. SKAGEN Vekst maintains at least 50% of its portfolio in the Nordic region, investing globally where the portfolio managers identify more attractive opportunities. The objective is to build a portfolio of companies capable of delivering attractive long-term returns.
The fund returned around 12% in EUR during the first nine months of 2026, slightly ahead of its benchmark. South Korea was among the strongest markets, with Samsung Electronics and financial groups Hana Financial and KB Financial among the top performers. Nokia also contributed positively, benefiting from its exposure to AI and data centres, and SKAGEN Vekst exited the position following its strong share price appreciation.
Taking profits and looking beyond AI
As enthusiasm for AI has increased, valuations have become stretched across many companies exposed to the theme and the portfolio managers have sold several US technology investments whose share prices had increased many times since the initial investments.
As a result, SKAGEN Vekst currently has virtually no exposure to US IT companies. This reflects the portfolio managers’ focus on valuation rather than a rejection of AI as an investment theme.
The fund retains exposure to AI through investments such as Alibaba and Samsung Electronics. Although the latter’s position has been reduced following strong share price appreciation, the portfolio managers believe the company continues to offer potential upside.
Beyond AI, SKAGEN Vekst has sought businesses where market expectations have become overly pessimistic and share prices no longer reflect their underlying potential.
The fund has increased exposure to Swedish mid-cap companies and real estate businesses, where weaker economic conditions and higher interest rates have weighed on sentiment and valuations. Consumer-related companies, including Puma and Hugo Boss, have also become more interesting following a decline in valuations as demand weakened after the post-pandemic period.
Bravida illustrates the fund’s approach. The Nordic technical installation services company operates in a fragmented market, where acquisitions and the integration of smaller businesses can generate economies of scale. However, weaker construction markets and concerns about large customer receivables have put pressure on the company.
The portfolio managers consider these challenges to be temporary and saw the share price as an attractive entry point into a profitable business. Bravida has since benefited from its role in technical installations for data centres, while management has demonstrated a willingness to buy back shares at attractive prices. The investment has delivered a return of around 70% for the fund.
Selective emerging markets exposure
Regional valuation differences also shape the fund’s positioning, and emerging markets have recently become increasingly attractive. They currently account for around 21% of SKAGEN Vekst, compared with 6% of its benchmark. US equities, in contrast, represent around 7% of the fund, versus 33% of the benchmark.
Following strong performance in parts of emerging markets, including Korean financial companies, the portfolio managers have reduced some positions and begun identifying opportunities in countries such as Brazil and Indonesia.
Brazil demonstrates the fund’s contrarian approach. With no exposure to the market in 2024, when Brazilian equities were among the weakest performers globally, the portfolio managers investigated whether negative sentiment driven by political and macroeconomic uncertainty had created attractive valuations.
Their research identified well-managed companies with strong earnings trading at very low valuations. SKAGEN Vekst now has around 3–4% of its portfolio invested across three Brazilian companies, which have performed well over the past two years.
A focus on fundamentals and valuation
SKAGEN Vekst’s positioning reflects a willingness to move away from popular investments when valuations become less attractive and towards overlooked companies offering better potential returns relative to risk.
The portfolio managers believe that long-term investing requires looking beyond prevailing market trends. Companies facing temporary challenges or operating in less fashionable sectors can offer opportunities when expectations are low and valuations are attractive.
By maintaining a Nordic core while investing globally where fundamentals and valuations justify it, SKAGEN Vekst aims to build a diversified portfolio that will continue delivering attractive long-term returns.
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All figures as of 30 September 2026 unless otherwise stated.