* Our quarterly updates are issued in Swedish
Polynom publishes quarterly reports with net asset value approximately 15 days after the end of a quarter.
Q4 OCT–DEC 2023
To be Published 15 jan 2024
Q1 JAN–MAR 2024
To be Published 15 apr 2024
Polynom Investment AB is an international investment company that invests in Swedish and European scaleups. Our investment horizon spans 10 years, with an average annual return target of 15%.
Our investment policy is characterized by a focus on individual companies. Like Warren Buffet or Spiltan, we do not adhere to a strict strategic plan. Instead, we evaluate opportunities in various industries and at different stages of development. We invest in different asset classes such as stocks, bonds, real estate, but the majority is in unlisted stocks.
We believe that focus creates value, and we invest significant effort in understanding the companies we invest in. We practice responsible investing, which means we invest in companies that operate with a long-term and sustainable perspective. This entails a few criteria that we aim to incorporate into each investment:
1. Long-term sustainable operations. Companies that work towards long-term reduction of potential negative impact on the environment, people, and society.
2. Operations we understand. The business model should be straightforward. We want to comprehend what the companies sell, why, and how the product or service is in demand – essentially, how the companies generate revenue.
3. Management with strong competence and integrity. A crucial prerequisite for owning a company is that the management works in the best interests of the shareholders.
4. Other owners with a long-term mindset and openness. It’s a plus if there is a strong main owner.
5. Growth potential with clear profitability goals. A good business should have the potential to be profitable in the future. Companies must have the ability to stay current and relevant over time, and not be overly exposed to external factors.
6. Well-managed companies that respect international agreements and norms regarding human rights, working conditions, environment, and anti-corruption.
7. Reasonable valuation with the potential for very good returns. We have a rolling investment horizon of 10 years with a target return of 15% per year on average.
When selecting companies for our portfolio, we follow a clear and well-established investment process. By systematically and consistently adhering to this process, we ensure that we only invest in companies that meet our criteria.
Even while we hold an investment, we work systematically with continuous monitoring and evaluation. We are patient in our investments but continuously take into account new information to ensure that the companies maintain the conditions for future value creation.
Risks? One must take risks to achieve returns, but this is not the same as taking chances or being unprepared. Conscious risk-taking is done with common sense. Additionally, our portfolio consists of about 60 holdings, providing us with natural diversification.
What do we not invest in? Our policy excludes companies with non-sustainable operations in weapons, pornography, tobacco, gambling, alcohol, and fossil fuels. We also avoid speculative companies, exploration companies, and other companies too reliant on the price of a single commodity, as well as companies dependent on factors beyond the company’s control.
We define scaleups as companies ready to scale up a developed product and/or service. These companies typically have previously received start-up/seed capital from angel investors, VC funds, founders themselves, family and friends, etc., and are now prepared to undergo one of their, if not the, first major funding rounds where larger players have/get the opportunity to invest.
Making society more sustainable is expected to be achieved, among other things, by investing in companies that not only provide jobs but also focus on diversity, take good care of their employees, offer a product and/or service with added value for the company’s target customers, have good relationships with subcontractors and other stakeholders, and take responsibility for making a positive impact in the environment the company interacts with in various ways. Simply put, the company needs to consider the interests of all its different stakeholders – shareholders as well as customers, suppliers, and employees.
All information provided by Polynom AB/Monylop AB is exclusively for informational purposes, for general dissemination, and should under no circumstances be used or regarded as advice, solicitation, or recommendation to buy or sell stocks or other financial instruments. It should be noted without doubt that the Act (2003:862) on Financial Advisory to Consumers or any similar legislation does not apply to information from Polynom AB/Monylop AB. Opinions and analyses presented by Polynom AB/Monylop AB should not solely form the basis for investment decisions. You should seek advice from licensed independent advisors and base your investment decisions on your own experience and situation. Polynom AB/Monylop AB reminds that trading in securities is associated with risks. An investment may both increase and decrease in value, and it is not certain that you will get back the entire invested capital. Historical performance is also no guarantee of future performance. Therefore, Polynom AB/Monylop AB disclaims any liability for any loss or damage of any kind that may be based on the use of analyses, documents, and other information originating from Polynom AB/Monylop AB.
Polynom/Monylop AB can never guarantee the accuracy of the information, and the information may be incomplete or abbreviated. Forward-looking analyses, etc., are based on subjective assessments of the future, which always involve uncertainty and should be used with caution.