Meet Adam Hansson and Johan Solini, Humle’s new fund managers
In-depth company analysis, quality and a disciplined approach to valuation. These are the foundations of Adam Hansson and Johan Solini’s approach as they take over the management of Humle’s funds. Their portfolios combine companies delivering sustainable earnings growth with high-quality businesses whose temporary setbacks have created attractive valuations.
“What attracted us was the combination of Humle’s long track record in small-cap investing and Atle’s long-term perspective and strong conviction in active management. We’ve known each other for several years and share a view of what drives returns over time. We saw a strong foundation here to build on Humle’s heritage together, through in-depth company analysis, high quality standards and a clear focus on valuation,” says Adam.
Adam and Johan both have experience in active small-cap management, but bring different perspectives. Adam has worked in both equity and credit analysis and joins from Lannebo Fonder, where he was an analyst and portfolio manager on the team behind Lannebo MicroCap and Lannebo NanoCap.
Johan has worked on both the buy side and the sell side. Previously a portfolio manager and analyst at Norron, he joins from Handelsbanken, where he worked in equity sales, focusing on Nordic small- and mid-cap companies.
In-depth company analysis sits at the heart of their approach, helping them understand what drives investment returns over time. They identify three key components: earnings growth, changes in valuation multiples and capital returned to shareholders.
What does quality mean in practice?
Adam and Johan look for businesses with high returns on capital employed, strong cash conversion and sound balance sheets. A well-established position in a market niche, capable management and long-term shareholders are also important.
Their research includes company visits, management meetings and conversations with customers and competitors. A central question is how management allocates capital: whether to invest in the business, make acquisitions or return cash to shareholders through dividends and share buybacks.
Two routes to returns
The same quality standards apply across the portfolio, but holdings fall into two categories, each with different primary drivers of returns.
Core: High-quality businesses that can reinvest their cash flows at high rates of return, either organically or through acquisitions. Sustainable earnings growth is expected to be the main driver of returns. The managers aim to hold these businesses for five years or more.
Catalyst: High-quality businesses facing temporary headwinds, where the managers identify a clear catalyst for earnings to normalise and the shares to re-rate. The potential lies in a higher valuation as earnings recover, alongside dividends and share buybacks. The typical investment horizon is one to three years.
“With quality as our foundation, we can also own businesses going through a more difficult period, where we see scope for a higher valuation multiple once they are back on track,” says Johan.
Valuation matters—even for high-quality businesses
A good company is not automatically an attractive investment. The managers therefore assess both how the business is performing and the price they pay for its shares. They consider earnings growth, changes in valuation and capital returned to shareholders together when assessing expected returns.
They aim to build a portfolio of 30–35 small-cap companies. Each holding is continually assessed against the original investment thesis, and the managers sell when that thesis has played out or no longer holds.
