Investment Strategy

Traditionally, fund managers work with analyses based on subjective and emotional forecasts of the stock market. At Simplicity, we do not work traditionally.

The funds invest in strict accordance with the SimplicityTM investment model, which uses quantitative models to provide statistical justification for each transaction. The model invests in documented winners and not underestimated companies.

The Fund Management strictly follows the instructions the investment model generates and thus there is no scope for the fund manager's own subjective or emotional decisions.

A large selection of shares increases the probability, with support of the investment model, to be able to identify shares with a positive development for a long period of time. Investments in shares are not made according to size or importance in index, hence every investment made is valued solely according to the investment model Simplicity.  

By using the investment model, the risk in Simplicity's funds varies over time. During some periods of time, the risk is higher compared to the historical risklevel against index and compared to other funds in the same category. During other periods of time, the risk in our funds is lower than index or compared to other funds. The reason for this is that the investment model works to create a dynamic portfolio of high performing shares.

The investment model Simplicity is created to perform during long trends in the stock market, thus it is important that our customers have a long term investment time frame.