Thoresen - Global Value Investments

Company Purpose

Thoresen Limited is a close investment-holding company with main purpose to invest in undervalued equities as well as debt and derivative securities possibly using financial leverage and hedging instruments to control risk and maximise return. Our shareholders benefit from dividend payouts and asset accumulation. Our aim is to achieve 20% annual total return on the investment portfolio over the long term

Investment Strategy

We screen thousands of listed companies annually to identify the best operators worldwide. The "best" companies are assessed primarily based on discounted cash flow values, but also some other criteria ensuring investment quality. We then invest in the most undervalued shares. When overall market pricing is low we may borrow to invest and when markets are expensive we may hedge or invest in bonds

Chief Investment Officer

The company's sole director, Ole Thoresen (39), is the company's Chief Investment Officer. He has extensive experience from management, financial services, stock broking, equity research, corporate finance and investment banking in general. The director has worked for institutions such as DnBNOR Markets, Aros Securities, Handelsbanken Markets, the Santander group and KPMG Corporate Finance

No Financial Advice

Thoresen is not a financial advisor or a financial services provider, and never provides financial advice. Thoresen will be involved with high risk investment activities that may lead to loss of all invested capital for shareholders. Our existing shareholders or potentially new shareholders should seek independent financial advice from a stockbroker, solicitor, accountant or other advisers authorised to give such advice

Private Investment Company

The company is not an investment trust or an investment fund, only a limited company investing capital provided by its shareholders. Thoresen does not target funds from the general public. We only raise capital from selected persons that are approved by the board of directors. Shares are divided in directors' A-shares and non-voting P-shares with reduced dividend rights for passive shareholders

Our Current Investment Portfolio

Below we list of our most prominent investments, updated 14 May 2010. The names of specific investments are not published as Thoresen regard its stock picking as its main competitive advantage. However, we do publish some key information and country of origin:

Equities: Individual shares make up about 92% of the total portfolio

1. Game distribution company (UK)

2. Pressure technology company (UK)

3. Low cost airline (UK)

4. Specialist recruitment company (UK)

5. Offshore engineering company (UK)

6. Stamp brokerage company (UK)

7. Goods transportation company (UK)

Hedging: Short positions make up about 0% of the total portfolio

Cash: Bank deposits make up about 8% of the total portfolio

Financing: About 59% of the total portfolio has been financed by loans from shareholders, with the remaining 41% being equity capital

Shareholder Value Creation and Protection

Thoresen aims at a 20% long term total return on equity investments and the tools to achieve this are:

- Picking the best operating companies in the world that are also the most undervalued

- Taking more or less portfolio risk depending on the overall market pricing, and this will be done by using investing in fixed income securities and using leverage and/or hedging instruments

- Minimising net present value of long term tax payments within the legal framework

- Minimise cost in daily operation and keep trading in financial markets low by taking a long term perspective on investments

- Only issue new shares or sell treasury shares at a minimum 10% premium to the portfolio's market value per share after deducting latent tax on unrealised profits, and only buy back shares at a minimum 10 discount to the portfolio's market value per share after deducting latent tax on unrealised profits

- Only accept new A-shareholders that can clearly contribute to the future success of the company, and accept suitable new B-shareholders that prefer to be passive shareholders to achieve economies of scale for the business

Disclaimer: Thoresen Limited is not a financial advisor and information communicated in this page or in other ways by Thoresen Limited does not in any way represent financial advice. No guarantees can be made about the accuracy of the content in this site or in any other information from Thoresen limited. Before making any investment decisions, you should contact appropriate financial advisors. Thoresen Limited assumes no responsibility, economic or legal, for the accuracy or the perfection of the content and calculations in this site or in any other communication from Thoresen Limited. Therefore, if anyone makes investments or other decisions based on information from Thoresen Limited, he/she is doing so on his/her own account and risk.