Naess has bought utility companies such as Southern Co., PG&E Corporation and PPL Corp., while selling shares in eBay Inc, Anthem Inc. and United Technologies Corp. among others. Naess and his partner, Claus Vorm, analyze thousands of companies quantitatively before investing in those with the most stable earnings and avoiding the most expensive. Their Global Stable Equity Fund has returned 11 percent a year on average over the past five years, beating 72 percent of its peers.
The stock market turmoil in February isn’t the beginning of a crash and U.S. stocks are set for 18 percent upside in 2018, according to Naess. “Estimates are keeping up, so I interpret this as a short-term correction,” he said. “When there’s been a proper correction earnings have always come down. This time they haven’t–it’s unusual.”
Sources and photo-credits: Bloomberg