FERNCLIFF - 15 YEARS WITH ACTIVE OWNERSHIP

Ferncliff is probably best known for trading activities in the equity market. Ferncliff’s long-term active investments over 15 years are less known outside the group. simply put, Ferncliff’s trading activities are what attracts the interest of the press and public, while the more long-term active investments are and have been most important for the good results delivered over the last 15 years and build-up of Ferncliff’s equity. Ferncliff has been active in many sectors, and the group has changed its focus from period to period depending on what sectors were favourable for investment with several sales strategy (exit) opportunities. The disadvantage of focusing on a single industry/sector is the fact that industries/sectors experience waves of popularity that often end up as a bubble. After a bubble has burst, it often takes 10-20 years before the sector is popular again and investors can make good private investments that can subsequently be sold or listed at attractive prices and valuation. Examples of such waves of popularity include shipping in the early 1970s, rigs in the first part of the 1980s, the It boom in the middle of the 1980s, the biotechnology bubble that popped in 1993 and the Japan bubble that peaked in 1990. Ferncliff has mainly invested in the expansion phase of new businesses in established industries. The companies Ferncliff invest in have relatively simple and transparent business models (price multiplied by volume) and Ferncliff use relatively little time on macroeconomics, foreign exchange and trends. The focus is on companies and pricing, and the expected changes in pricing and markets. Throughout Ferncliff’s 15-year history, the group has invested in 7 industries/sectors, on average one new industry/sector/wave every 2 years. For more information, please see our Ferncliff Annual Report 2009 >>