DNB TMT Absolute Return

The DNB TMT Absolute Return Fund is structured around four key pillars: themes, valuation, value creation, and momentum. Thematic investing focuses on identifying emerging trends and technological advancements that could drive future growth. Valuation involves a comprehensive analysis of financial metrics such as price-to-earnings ratios, EV/EBITDA, and other relevant indicators to assess the intrinsic value of potential investments. Value creation looks at factors like management track record, corporate governance quality, economies of scale, and barriers to entry to determine the long-term sustainability and profitability of a company. Momentum analysis considers market perceptions, stock ownership patterns, and short interest to understand the risk and reward dynamics surrounding specific events or market conditions. The PMs closely monitor factor exposure to limit style biases, though factor tilts may occur periodically as a consequence of their bottom-up selection. The fund is relatively concentrated on both side with a portfolio of 60-80 holdings. The strategy targets a volatility range of 5-15%, aiming for a gross exposure of 130-200% and a net exposure within +/- 20%, while seeking to achieve a return of 5-10% above the risk-free rate.