Ferncliff’s primary strategy so far has been to finance investments by equity. The group has nevertheless
used derivatives that permit the gearing of investments on occasion.
Conservative financing
The company is financed primarily through equity. The company has little or no debt at the parent
company level. Subsidiary group/associated companies finance themselves based on their own
balance sheet normally without any corporate guarantees.
Investments in shares are made by equity financing, and there are strict limits for how much
exposure there can be overall for the Group. Investments are made primarily in listed companies
with good liquidity. The group’s exposure can generally be broken down into three groups:
• Direct Active Investments
• Trading Portfolio
• Property
Portfolio investments
The company’s overall portfolio of investments is well diversified and gives a low overall risk for large
losses beyond a general fall in the stock market.
Currency
The company has little direct exposure to foreign currency. Trading stock is primarily NOK listed,
while the underlying operations for most of the investments have international exposure. This applies
to oil and offshore investments, engineering companies, and the fish farming industry.
Simple Decisions
A small transparent and effective organisation working close to the principal owner makes the
decision-making short and effective. Any corrections in the equity market that entail an increased
risk can thus be corrected quickly. | 
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