Home Value Investing Olesen Value Fund +0.4% In Oct; Sold Havas At 135% Gain

Olesen Value Fund +0.4% In Oct; Sold Havas At 135% Gain

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.

The Olesen Value Fund earned 0.4% net in Oct. vs. 1.2% for the MSCI All-Country World Index and 2.4% for the S&P 500.

Olesen Value Fund sells Havas

We sold our investment in Havas SA (EPA:HAV) (OTCMKTS:HAVSF), a French company that owns a global network of advertising, media buying/ planning, PR, and similar agencies. We first bought the stock at €2.82 in Aug 2011 and sold at €6.31.

Our original purchase price was approx. 10x adj. trailing earnings. The business has very low net capital requirements, which means it can grow without consuming much free cash flow – a highly valuable characteristic. In addition, the company was in the middle of an already very successful multi-year margin expansion following the replacement of senior management a few years earlier, which I expected would result in significant further margin increases. As expected, both earnings and the P/E ratio increased, which led to a very good return on our investment.

During October, we continued accumulating shares in three illiquid securities, all of which I think are significantly undervalued. We suffered a minor set-back recently when the stock price of OnMobile Global Limited (NSE:ONMOBILE) (BOM:532944), a technology company listed in India, rose sharply before we could obtain the necessary trading capability to buy the stock. Also, after the end of the month, we started buying shares in a small/mid-sized European company, which I expect will take a little over a month. The company trades at approx. 9x adj. trailing earnings, has a good balance sheet, and we think earnings may increase substantially.

Olesen Value Fund

Olesen Value Fund: Investment Philosophy

  • Seek to generate substantial capital appreciation over the long term, with minimal risk of loss
  • Define risk as permanent loss of capital; tend to view volatility as opportunity, not necessarily a risk
  • Value investing philosophy, using a bottom-up approach
  • No leverage

Olesen Value Fund: Fund Manager

  • The fund has $28 mil. in assets and is managed by Christian Olesen
  • Virtually 100% of my net worth, except for my cash reserves, is invested in the fund
  • Previously worked as analyst/trader for Xaraf Management, a group within Paloma Partners, a Greenwich, CT-based hedge fund with approx. $2 billion in AUM
  • Graduated from Wharton (Finance, Accounting) and holds the CFA designation

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Sheeraz Raza
Editor
Business

Chinese Stocks Jump on Promise of “Moderately Loose” Monetary Policy

David Moadel16 hours

The newly-announced measures mark a significant tonal shift in Chinese monetary policy Shares of Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), Baidu (NASDAQ:BIDU), and other Chinese stocks rallied sharply Monday morning after the Chinese government announced stimulus measures to...

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.