Tommy Kristiansen’s Portfolio

[Tommy Kristiansen]

I’m exclusively a small cap investor. I´ve not allways been, but as my journey progressed I realized that small caps is where I belong. Volatility has never bothered me, neither does the risks involved. It comes naturally for me, in some way. And, I´ve always appreciated a treasure hunt.

My strategy is value-oriented, with the occasional exception for GARP. I often sacrifice quality for cheapness, but I generally don’t do unprofitable companies or value traps. That is, I try to avoid them. Sometimes (read: often) I make a mistake, and that’s just a part of the game. If it can’t be calculated on the back of a napkin, I’m usually not that interested.

What I generally look for is, as already stated, price. I’m way more worried about, and attentive on, the downside rather than the upside. That’s how I mitigate my risk. If I can find a stock trading net of cash or with supporting assets above the share price, I’m quite happy.

Obviously, I look to the fundamentals. Depending on the company and industry, I look for different things. I prefer a company with stable and decent gross profit margins, excellent balance sheet, not-declining revenues, decent return on capital, with a management that knows how to do capital allocation.

I’m also globally oriented. Most of my positions are, and always have been, in the Nordics. Let’s take a quick look at my portfolio to date. Admittedly, the percentages is “ball park-y”. I’d like to be a bit diversified, and aim to add to my portfolio the coming year. As of now, I’m about 30% in cash.

Ferronordic Machines: 18%

Panoro Energy: 16%

Skue Sparebank: 9%

Comintelli: 9%

K3 Capital: 8%

Hunter Group: 6%

Sogn Sparebank: 5%

Voss Veksel- og Landmandsbank: 5%

FP Newspapers: 4%

• This topic was modified 2 years, 4 months ago by Tommy Kristiansen.

[Markus Enge]

We have 5 overlapping positions, which might not be a coincidence since you are a source of a lot of my ideas.

But Hunter group, explain yourself?!

[Tommy Kristiansen]

Hehe, I know! In hindsight it’s been a poor investment, and I’ll probably not break even. Learned a lot from it though. Most importantly to not become as influenced by the noice as I was, but also how cyclical cyclicals can be.

That said, going back to 2019 and given the value proposition, I still think it made sense at the time. Maybe not as much sense, given the risks involved, but still. Would I do it again? Probably not. I see the argument for buying a shipping company, mining company etc. for exposure to a commodity. But it is a different ball game, after all. If I’m taking this route again, I’ll be more aware of the future of the underlying commodity. Panoro doesn’t count 😉

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