Historical returns are no guarantee of future returns. The money invested in the fund can both increase and decrease in value, and it is not certain that you will receive back the entire invested capital.
The Nordic tech miracle
The Nordics might just be the most attractive region in the world for investors. Our population is tech savvy and well-educated. The Nordic market is also limited for the tech companies in the region which makes them expand globally at an early stage of their journey. This creates innovation in the area and the possibilities for global success.
Joel explains the advantages of Nordic corporate governance
In the Nordic countries, we take it for granted that cash flows eventually end up with the shareholders. This is actually not a given in American companies. The difference is mainly due to stock-based compensations. This type of compensation is reasonable because it allows employees in start-ups to participate in creating value by receiving a portion of their salary in stocks.
However, in larger, established companies, it has become all too common for a significant portion of generated cash flows to be used to buy back stocks, which are then distributed to employees to retain talent. We advocate for balanced incentive programs, but emphasize that the majority of cash flows should go to the owners. This is something we excel at in the Nordic countries, and a tradition well worth defending!
Sweden has outperformed
There are several reasons why the Swedish market has been an outperformer. We're well educated and there's a stable climate for doing business. Add to this, the fact that the Nordic market is limited, and companies are forced to expand internationally. All of these are some of the pieces that make up a successful listed company.
Internationall tech companies
The success of Spotify has been important for the tech cluster in Sweden. They have shown that it's possible to go from a business idea to a fully-fledged listed company with a market cap of 200 billion SEK in just 15 years.
A lot of innovation in the region
We find innovative small and mid-caps especially interesting. Having a focus on that market cap and geography has had good returns historically and we believe the future is looking bright as well. Sweden, together with Switzerland and Australia are the markets that have given the highest returns in the last 100 years.
Cluster of innovative companies
Epidemic Sound is one of the companies that were inspired by Spotify. In the early days of Spotify, the founder Oscar Höglund and Jan Zachrisson were impressed by the services Ek and Lorentzon had built. Since then, Epidemic has taken huge steps toward its vision to "Soundtrack the world". But Spotify has not been the only source of inspiration. Previous employees and investors in the streaming company have reinvested capital in the Swedish tech cluster. TIN New Technology already has a stake in Epidemic Sound and we're looking forward to getting to meet and invest in more innovative Nordic companies.