My Portfolio

Current portfolio

Invested capital is divided into two portfolios,  each an ISK account.

Port 1 . Sweden domiciled companies denominated in SEK (no withholding tax)

Port 1. Non-Swedish domiciled companies denominated currencies other than SEK.

Port 1 is useful in that it avoids all volatility, risk, and trading costs that you get from FX positions

Port 2 provides FX risk mitigation, protecting against a weak SEK and furthermore allows me to invest in a global universe, providing diversification and balance.  Typically Swedish stocks and currency are higher beta than other developed markets

At the moment portfolio 1 comprises 87% of total invested capital and the international portfolio 2 is just 13%.  This is a result of me focusing on pure Swedish stocks providing a decent income with little economic drag (trading costs, FX, withholding tax)

However from overall risk perspective,  87% is too high and would aim to increase to  40-50% over time, ideally in real currencies like USD, EUR, GBP, CHF and JPY.     I believe CHF and JPY assets  in particular can provide useful risk mitigation characteristics in a global risk-off scenario with low or negative correlation to SEK or even USD.    

List of stocks remain under development so no point in providing list and weights at moment.  In general have mix of Preference shares from real estate, airline and industrial companies,  Large cap TMT stocks and banks with good dividend yield.   Some smaller mid cap companies but selective.  Boring, large cap companies with a proven business model over time, typically strong cash flow but low growth and mature market positions.

In addition i allow myself a small "fun bucket" of risk in each portfolio depending on whether it is a Swedish or international stock.  At the moment i have 3 bets (2 international and 1 Swedish) and these are near default or in some way very distressed, but where i feel long term recovery value post reconstruction is in excess of current market value, assuming a "going concern" or potential sale to 3rd party looking to pick up the assets, or IP cheap.  Positions are below 0.5% each and take a necessary 1-2 year view to given enough time to make required double digit returns