Pareto's Norwegian portfolio underperformed, switches four stocks for December
December 02, 2024 at 03:43 am EST
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Pareto Securities' Norwegian portfolio gave a negative return of 1.2 percent in November, while the benchmark index OSEBX rose 1.6 percent.
"The shipping sector continued to struggle, while Sats and Mowi were the best performers," Pareto writes in a commentary.
The biggest faller was tanker giant Frontline (-14.6 percent), after the VLCC market failed to live up to winter expectations and estimates came under renewed pressure after the Q3 report.
One of the winners was the aforementioned gym chain Sats with 14.4 percent, but for December Pareto chooses to remove it from the portfolio. Instead, it includes the discount chain Europris, where it sees potential for a short-term trigger in December.
In addition to Sats, Yara, DOF Group and Himalaya Shipping are also removed from the portfolio, and replaced with Norsk Hydro, Salmar and Odfjell Drilling.
The portfolio is up 20.4 percent so far this year, compared to OSEBX 11.3 percent.
Norsk Hydro ASA is one of the world's leading producers of aluminium and energy. Net sales break down by activity as follows:
- production of aluminium products (42.7%): primarily aluminum extrusion profiles, rolled aluminum products, construction metals, and automotive components;
- aluminium sale and trading (36.5%);
- production and refining of aluminium (18.4%): bauxite and alumina, primary aluminum and aluminum casthouse products;
- production and distribution of energy (2.4%): electricity (No. 2 producer in Norway) and hydroelectric power.
Net are distributed geographically as follows: Norway (3.8%), Germany (10.9%), France (4.7%), Switzerland (4.4%), Spain (4%), Poland (3.8%), Italy (3.1%), Europe (14%), the United States (22.8%), Brazil (5.4%), Canada (3.6%), America (1.8%), Japan (3.1%), Singapore (3%), China (3%), Asia (7.4%), Australia and New Zealand (0.7%) and Africa (0.5%).
NORSK HYDRO ASA 
