The manager opens with a quote:
"To a value investor, investments come in three varieties: undervalued at one price, fairly valued at another price and overvalued at still some price. The goal is to buy the first, avoid the second and sell the third."
The quote comes from hedge fund manager Seth Klarman, and according to Angenfelt, it is a simple and condensed description of what the fund's management seeks to achieve. This approach is then complemented with criteria tied to, among other things, market position, moats, balance sheet, management, and capital allocation.
When these criteria are met, the fund believes that an investment is often successful.
As an example, the manager highlights Hoist Finance, a company described as one of the fund's driving forces in recent years. Since mid-2023, the stock is reported to have increased sixfold. About three years ago, Hoist was trading at a forward-looking earnings multiple of four times after the share price had fallen nearly 80 percent and the company's market capitalization was barely 2 billion kronor.
At that time, both institutional investors and analysts are said to have left the company, which is attributed to weak leadership, poor financial decisions, and difficulties in analyzing the company in an environment of, as described, unpredictable regulation from European supervisory authorities.
According to the manager, many meetings with the new management and board representatives were required before the potential could be evaluated. What made the investment particularly attractive was the then prevailing valuation, which is described as providing downside protection.
The subsequent development is said to have been better than expected. Hoist's market capitalization is now about 11 billion kronor, while institutional interest and analyst coverage have returned.
Despite the share price increase, the manager believes that the potential is not exhausted. They argue that Hoist is still valued lower than the major banks and several other niche banks, despite what they describe as better growth, market position, and profitability, as well as an equivalent direct yield.
As a comparison, the recently listed niche bank Noba is mentioned, which the fund holds as a short position. Noba's business is said to consist of about 70 percent consumer loans with an average double-digit interest rate, which according to the manager has attracted regulatory attention. The manager also points out that parliament has decided to phase out the interest deduction for consumer loans in 2026 and argues that it appears to be a mispricing that Noba, with lower growth and more risky operations as well as a large share overhang, is valued higher than Hoist.
Hoist was one of the largest individual positive contributors during the month, along with two other long positions in the security group Securitas and the building supplies retailer Byggmax.
| Chelonia Select, % | February, 2026 |
| Fund MM, change in percent | 1.91 |
| Fund YTD, change in percent | 2.80 |
