Skagen Funds has a 150 percent return on Atlantic Sapphire: “A multiple increase in price is a certainty”

News
489

Investment management company is firmly convinced even greater advances are forthcoming.

“We invested in Atlantic Sapphire at an earlier stage than we normally do. But we saw a unique opportunity to invest in an exciting company that has the potential to revolutionise the salmon farming sector,” said Cathrine Gether, investment manager at Skagen Kon-Tiki which is based in Stavanger, Norway.

Major shareholder
Since the stock fund invested in the company a year ago, the share has risen by 150 percent. In the meantime, Atlantic Sapphire has been listed on Merkur Markets.

“When we bought in with ten percent of the company, DNB, among others, came on board on the loan side. That bodes well as they have a wealth of expertise with regard to the fish farming industry. But what was most important for us was the people who were responsible for the whole project. Johan Andreassen has been engaged in the business all his working life and has much expertise. He has invested significant sums in the company, so he is in the same boat as the shareholders,” said Cathrine Gether in a statement on Skagen’s own website.

Atlantic Sapphire has a land-based salmon farming facility at Hvide Sande in Denmark, and are in the process of building a new and considerably larger complex on the outskirts of Miami, Florida.

Multiple increase in store
Gether believes the way the share price has climbed the last year is just the beginning.

“Even after a very agreeable development for the share price, we are still viewing this as a long-term investment. A multiple increase in price is a certainty. This is due to the massive potential in an industry where conventional fish farming is struggling to grow on account of government regulations and biological problems, at the same time as demand for salmon is increasing. They (Atlantic Sapphire) are light years ahead of everything else we have come across of land-based projects,” she said.