Overstone International Value Fund on Svenska Handelsbanken AB
Thesis
Handelsbanken is part of the fund’s bank basket that benefited from expectations for interest rates to remain higher for longer. The fund highlights double-digit returns on tangible equity and resilient asset quality across the three bank holdings. It also views their valuations as moderate at roughly 9-12x earnings. The thesis rests on solid profitability without paying a demanding multiple.
“They benefited from interest rates expected to remain higher for longer, and the ceasefire in the Middle East.”