Sector’s global team comprises three professionals who together have more than 50 years’ experience from industry and capital markets. The founder, J. Peter Andersland, has been analysing the global economy, commodities and capital markets for nearly three decades and has 15 years of experience from managing long/short investment strategies using both cash and derivative instruments.
The team is organised as a separate investment company, Sector Omega AS, which is owned by the investment professionals and the Group’s holding company (Sector Asset Management AS). Sector Omega AS is a regulated investment firm, authorised by the Financial Supervisory Authority of Norway to provide active management services and investment advice. The team has been managing Sector Global Investments (formerly Sector Maritime Investments) since January 2000. In addition, the team manages the Ucits long-only fund Sector Global Equity Kernel and a number of closed-end private equity products.
We believe capital markets are close to efficient, meaning that the competition to discover attractive investment opportunities is intense. However, by attacking some of the embedded behavioral anomalies that have proved to be persistent over long spans of time, and doing it through a disciplined process, we believe it is possible to generate returns in excess of the broader market indices over the full equity market cycle. We seek to extract attractive risk adjusted returns from management of market risk trough the stock market cycle, as well as, by selecting the most attractive markets, sectors and assets in which to invest.
Our investment philosophy has evolved over time, formed by both internal research and investment experience, as well as, academic and applied research undertaken by others:
• The global economy and capital markets are highly complex systems that do not lend themselves well to precise forecasts or “optimal solutions”. Thus we have become purely dedicated to process and not on outcomes such as “tracking-error limits” or various types of portfolio optimisations.
• We believe in a marriage between “Man and Machine” where “Man” represents our thinking and wisdom, as well as, our ability for “visual inspection”. The “Machine” provides raw computational power, and it is the apparatus that effectively “ties us to the mast” and help us to shut out the song of Sirens, thus helping us filter out “stupid” decisions. Because it is easier to eliminate stupidity than to create brilliance and because analytics lends itself particularly well to filter out bad decisions, a main tenet of our investment process is via negativa, or avoiding things that may cause harm to the investment portfolios. That is, a focus on avoiding the losers and not so much on picking the winners.
• We have a firm belief in the long term efficacy of the value investing style for selecting countries in which to invest, as well as, individual assets. Furthermore, new information has a tendency to only gradually re-price assets and man has a disposition for herding, thus prices often overshoot fundamentals. Such phenomena make price momentum strategies attractive for selecting countries, sectors, industries, as well as individual assets. However, due to the low correlation between the two investment styles, it is the combination of value and momentum that is especially powerful. Therefore, a combination of Value and Trends are a common denominator in all our investment strategies.
Our approach, in essence, utilises the best aspects of the fundamental and quantitative schools of investment management whilst avoiding the bad elements from both. Our investment philosophies implemented both as an equity long-only program in Sector Global Equity Kernel and in an equity long/short version in the Sector Maritime Investments fund.
Sector’s global energy team comprises the following investment professionals:
J. Peter Andersland, born 1961, has nearly 30 years of experience from analysis of the global economy, commodities and capital markets. He has extensive investment experience from global investments in both real and financial assets, as well as financial derivatives and short selling. Mr. Andersland was a co-founder of Sector Asset Management in August 1999. Before co-founding Sector, Mr Andersland was Head of Equities at Handelsbanken Markets, where he was responsible for Norwegian operations related to equities research, sales and trading. In 1986, he joined Gearbulk Ltd., a major London-based shipping company, where he held various positions related to finance, research and business development, including restructuring of the group’s container liner operations and the Group’s business strategy analysis and formulation. He left Gearbulk Ltd. in 1991 for an investment analyst position with Christiania Markets. Mr Andersland was subsequently appointed Head of Equities at Christiania Markets, where he was responsible for corporate finance, research, sales and proprietary trading. He holds a BBA from University of Miami/Florida International University and an MBA from Pacific Lutheran University.
Inger-Anne Varmann Vikre, born 1961, has 30 years of experience from banking and global trading at Den norske Bank, DnB NOR Asset Management and Sector Asset Management. She joined Sector in 2005 and has substantial experience from trading global equities, fixed income and financial derivatives both using algorithmic trading programs of multiple securities, as well as traditional voice based trading. Mrs. Vikre is a “Siviløkonom” with a major in Finance from the Norwegian School of Management.
Erlend Sand Aas, born 1978, has 10 years of experience from quantitative analysis, algorithmic trading and long/short portfolio management. Mr. Aas wrote his thesis on “the Detection of Turning Points in Stock Prices’ Cyclical Processes” at Sector Asset Management and joined the company as a research analyst after finishing his thesis. Mr. Aas holds an MSc in Industrial Economics and Technology Management from the Norwegian University of Science & Technology with a major in finance.