magazine · 2018-07-11 · -18 magazine linc events - p.21 get introduced to the world of finance...

-18magazine

LINC events - p.21 Get introduced to the

world of finance through our annual

events.

Interview with Hansa Medical - p.29

Learn more about the company that’s grown 5000 % in five years.

Meet the main guest of IBF 2017 - p. 41 Get to know Sean George and his

background on Wall Street.

Female Network - p.11 Find out about the network of LINC’s prestigious women.

LINC MAGAZINE 17/18

Editorial Staff

Editor in Chief: Gustav Egesten Art Director: Didrik Wessel

Writer: Petter Råge Writer: David Hasselström

Writer: Thea Nyrell

Writer: Lina Berg Writer: Anton Ljung

What’s inside

1. Words from the President

7. Humans of LINC

11. Female Network

13. Interview – Former president of LINC

19. A year with LINC

21. Events

22. The Banking Tours

23. Investment Banking Forum (IBF)

24. Women Business Conference (WBC)

26. Transaction Advisory Forum (TAF)

27. The Case Contest

29. Interview – Hansa Medical

37. Linc Asset Management

41. Interview – Sean George

45. R&A team brings us: Dedicare

49. Guest lecture with the AP funds

52. We would like to congratulate…

i iiLINC MAGAZINE 17/18

Words from the President

Founded in 1991, the core purpose of LINC has always been to educate ambitious students at Lund University in financial matters and connect them with top firms within the financial industry. I am grateful for the opportunity to lead this organisation, and honoured to carry on the heritage that my predecessors so successfully associated LINC with.

After being a part of the Executive Board of LINC for two years, I am proud to see what the organisation has evolved to. From its foundation, LINC has arranged a wide range of educational events and activities, and shaped a large amount of ambitious and competent professionals. With an objective to continue do so; LINC has during the latter years developed a strong internal organisation with improved policies and procedures as well as increased transparency and awareness of LINC and its activities.

When I, together with the current Executive Board was elected in March 2017 we set up clear goals from day one. We aimed to:

• Diversify LINC’s membership base through expansion at Lund University Faculty of Engineering and increased focus on female students

• Strengthen LINC’s internal organisation • Launch new events and initiatives and cultivate current activities

Historically, LINC has primarily been targeting students at Lund University School of Economics and Management (LUSEM). With LINC’s strong position as the undisputed finance society at LUSEM, the Faculty of Engineering (LTH) constitutes a substantial proportion of LINC’s growth

potential. Engineering students are currently more attractive and relevant for position within the financial industry than ever, and through guest lectures, social events and increased marketing at LTH, the Executive Board of LINC 2017/2018 has managed to recruit a great amount of LTH-students. In addition to the expansion at LTH, an important focus area during the past year has been to attract more female students to LINC. Not only have we arranged several workshops and social activities exclusively for female students, but we have also continued to develop LINC’s Female Network and Women’s Business Conference as well as launched Female Banking Tour. Even though the results from these initiatives have exceeded our expectations, it is of outmost importance to keep working on these areas to further fortify LINC’s competitive edge as a finance society.

As of today, LINC is with its 1,500 members, out of whom 100 work voluntarily, the leading finance society in Sweden and one of the most prominent organisations of its kind in the Nordic countries. LINC’s recent expansion has put pressure on its internal structure – as a continuously growing organisation, efficient information flows, decision-making processes and administrative systems are essential to minimise the dependence on human capital. In order to secure sustainable growth without compromise on quality, the importance of above-mentioned areas will only increase in the future.

As mentioned above, we successfully launched Female Banking this year, generating exclusive interaction between leading financial institutions in Stockholm and ambitious female students interested in finance at Lund University. We re-launched Copenhagen Banking Tour where Polaris Private Equity, Danske Bank and Citi hosted a delegation of 20 LINC-members.

1 2LINC MAGAZINE 17/18

Moreover, we arranged an M&A-case with the actual target company’s management in the jury. Going forward, these new initiatives are to be held on an annual basis and expected to form an important part of LINC’s core operations. In addition to our new initiatives, we have continuously worked on developing our core events, such as Investment Banking Forum, by increasing the number of participating students and firms, as well as improving the overall quality of the event year by year.

As a symbol for the progress LINC has made during the year, I am delighted to announce that a record amount of LINC-members have received offers for positions at leading investment banks and financial institutions, ranging from Goldman Sachs in London to Bodenholm Capital in Stockholm, this year. In the end of this magazine you will find a list of all LINC-members that have been recruited for part-time, full-time and internship positions in 2018. I am confident that they are all well prepared for what awaits, and optimistic that they will continue to represent LINC in just as a desirable manner as alumni, as they have been doing as students.

I am fulfilled to hand over the responsibility of LINC to the Executive Board of 2018/2019 – the organisation is in greater shape than ever and in my new role as Advisor, I am excited to see how far LINC can go.

JOHN KLEVEN FALCK


HUMANS OF LINC

1. What do you study?

2. What’s your roll within LINC?

3. What do you want to work with in the future?

Thea Nyrell 1. I study my sixth semester of Bachelor of Science in Business and Economics, with focus on Corporate Finance.

2. I’m currently the project leader of Women’s Business Conference (WBC) 2018 where I am leading a team of four ambitious and finance interested females in order to create and develop WBC 2018. Our ambition is to attract more firms and applicants this year than ever by reaching out to both LTH and Ekonomihögskolan, as well as to both Swedish and international female students.

3. I have great interest within retail and my ambition is to combine it with finance. This summer I am about to do an internship at H&M as a business controller and I see this as a perfect combination and start of my career.

.

Kevin Nilsson 1. I am currently studying my fourth semester of a Bachelor in Business administration.

2. My role within LINC is as Guest Lecture Coordinator. This means that I take contact with interesting people from the business world, primarily within finance, and try to get them to visit us. Most recently I ”recruited” the guest lectur for Transaction Advisory Forum (TAF). I have also been a part of the R&A.

3. My primary interest currently is within Investment Banking. I try to keep an open mind towards different career paths and can therefore see myself in Equity Research or in a boutique oriented environment as well.


2. I’m currently Head of Investment Resarch.

3. I want to pursue an international career within global markets.

Dante Haques 1. I am currently studying my third term of the Bachelor in Business and Economics.

2. I have been active both in the Event committee and in the Research & Analysis committee.

3. I want to work in an environment which combines tech and finance, alternatively in finance towards the tech sector.

Staffan Bülow 1. I study master of finance and investments at Copenhagen Business School and I graduate in 2019.

2. I am Head of Equity Research in LINC Research & Analysis, which conc re t e l y means tha t I am responsible for our analyst’s output, feedback and education.

3. I would like to pursue a career in Equity Research at an investment bank.

Johanna Lägnert 1. I’m studying MSc in Engineering Mathematics, with specialization in financial modelling.

2. I’m the secretary of LINC.

3. Probably as a quant or with structuring. I’m quite openminded about it as long as it’s a nice combination of mathematics/statistics and finance.

Sofia Nilsson 1. I’m studying Master in economics with focus on f inancia l- and macroeconomics.


In the spring of 2017, the Female Network was founded with the aim of attracting more female members to LINC and the finance industry. The Female Network has now been up and running for one year, and what a year! In the beginning of the fall of 2017, the Female Network introduced a platform for female members of LINC, which has had an important role in the work of attracting more female members to LINC’s events. The platform has also given a better picture of what type of events female members demand.

During the year, the Female Network has been arranging several events for our female members. First out was an interesting workshop together with the Research & Analysis team where more than 20 female students interested in finance had a crash course in stock picking. In February the first edition of Female Banking Tour was arranged. The Female

Banking Tour was a very successful event. A group of 13 female m e m b e r s o f L I N C we n t t o Stockholm for a day and visited Garantum Fondkommisson and Danske Bank. The participating firms were happy to see that many women w e r e i n t e r e s t e d i n f i n a n c e . Furthermore, the Female Network is arranging a guest lecture in April with Caroline af Ugglas, who is the vice president of Svenskt Näringsliv. She will be highlighting the importance of attracting more women to the finance industry.

The year with Female Network has been successful and we are starting to see a greater interest from female students, which we are very happy about. In some years we hope to see that more female members will be engaged in LINC and that the Female Network eventually will no longer be needed.

LINA BERG

11

Female Network

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Alumni meeting with former President Markus Drott

Interview Former President

of LINC

We sit down with former President of LINC, Markus Drott, who’s currently within trading at Danske Bank in Copenhagen.

Markus, you used to be the President of the LINC. What was that time like? That’s right! When I joined LINC it was a little less institutionalized than it is today. It was more of a “boy’s club”, changing logos every two years and things like that. I first found LINC during my first semester in Lund through then vice president Erik Thorell. Back then I was already very interested in finance and did some trading myself, but I wanted to learn more. I’m also a very social person, so joining LINC made perfect sense.

Is there anything in particular that you’re proud of, or felt like you accomplished in LINC? I was elected for the board a year after joining. After that I tried to contribute to running LINC with

increased continuity. It’s difficult to take credit for anything in particular, but I did play a role in developing the Investment Banking Forum. I wasn’t involved with the first one, but the next three or four I took part in organizing. Back when it was new we didn’t have the pricing power to charge what they do today, but that shows that persistence pays off. It was a fun time!

Do you feel that your time in LINC has helped you in any way? Absolutely, I think it helped a lot. For one, there were a couple of incredibly driven people back then who built something I wasn’t involved with, but which was a great tool, namely the Education and Career Preparation committee. The education that they provided helped me out a lot with my theses work.


Other than LINC, were you engaged in any other student activities? I was part of Malmö Nation but I wasn’t very active. I went to some events and their clubs though. Other than that, spexes and the carnival were always fun to visit. I look back at my time in Lund as something fun, something I would hope my daughters might get to experience when they grow up. It is after all, with the exception of exams, a pretty carefree time. Also, these days it’s nice how you always feel like you share a connection with colleagues or acquaintances who are fellow alumnis of Lund.

You currently work for Danske Bank. How did that happen? After working for Saxo Bank earlier during my time in Lund, in 2010 I applied for a job here at Danske Bank. After interviewing for three different departments I got a match at the third, here at trading. After that I stayed in Lund for one and a half year before I started full time.

This was the kind of position that they call Student Assistant in Denmark? Exact ly, s tudent ass i s tant or “studentansatt”. It’s basically a part time position, but it’s a very good type of employment and something that’s a natural part of almost every company in Denmark.

You have a master’s degree yourself. Does that apply to most of your colleagues? Yes, among recent employees almost exclusively. It’s called “kandidat” in Danish however, which can get confusing. Most of the people we hire have degrees in economics or technology.

”banking at its core is a people

business”

Do you yourself work with recruitment? Not directly, but I do attend some events. It’s important to be present. One thing to remember is that banking at its core is a people

business, and the money is the same here as it is with Nordea, SEB or Deutsche Bank . In the end , particularly in regards to institutional banking, it’s all about dealing with people you trust so finding the right people is important. The same goes for the technological aspect of banking. You want the people who are visionary enough to imagine the needs of tomorrow while being talented enough to implement and execute the solutions. I don’t see us surviving as an institution without the right people, so if I can be a part of attracting them to us then I’m happy to do that. Also, I remember how important it was to me when I

was in your position to have someone to engage with, so it’s not all just roll up banners and handouts.

What is it like working in Copenhagen? Any difficulties with the language barrier? Some Swedes, maybe those from Stockholm in particular, seem have an aversion to the Danish language but I don’t really get why. Maybe it’s easier if you’re from Skåne. Besides that, I lived in Copenhagen for a year and a half. Once you move here you learn quickly, except maybe for numbers which can be somewhat challenging. When writing e-mails I always use


Swedish or English however, and while talking with colleagues we u s u a l l y s p e a k w h a t w e c a l l Scandinavian, which for me is Danish with a very Swedish accent.

What is the bureaucracy like? Yours and your wife’s parental leave for instance. My wife can take of them if we like. Sweden and Denmark cooperate and have routines in place for all of that. The advantage of working in Denmark as opposed to other EU countries is maybe that we have a very close interface between our authorities. Other than occasionally filling out some forms it’s really hassle-free living in Sweden and working in Denmark.

Back when you were interviewed in 2013, you called your job demanding and intense, but also said you didn’t consider that negative. Do you still feel that way? Well, I suppose that’s very individual. Generally, those in your position want to do either what I do, some form of trading, or work in the banking end

of corporate finance, or go into management consulting. I can only speak for what I do, but what I like about this is that there’s always something new going on. You get to take part in things that shape society, because in the end it comes down to trading stocks in companies where people work. It’s a critical institution of that in a way constitutes the linchpin of the private economy. Without a working banking system you can’t really have a functioning market economy. And it’s pretty fun being a part of that, but also the fact that the market is the sum of a lot of people’s decisions which makes it highly dynamic. I’m the type of person who likes a learning curve that never really ends, and I get that here.

PETTER RÅGE


A year with LINC

September Recruitment. Investment Banking Forum. CV

workshop.

October London Banking Tour.

November Stockholm Banking Tour. Workshop with R&A.

December Copenhagen Banking Tour. Guest Lecture.

January Recruitment. Transaction Advisory Forum. Guest

Lecture. Excel Course.

February Female Banking Tour. M&A Transaction Case.

March Women Business Conference. Annual General

Meeting.

April Women Business Conference. Annual General

Meeting.

May Guest Lecture. Magazine Release.


´Events

Each year, LINC arranges several banking tours for our members. The main purpose of the tours, besides giving an insight to potential working places, is of course to give them a chance to network on a social plan with the employees of the leading financial institutions of northern Europe. Usually, the banking tours a r e s e t o f f t o L o n d o n a n d Stockholm, but this year, we also went to Copenhagen!

The Banking Tours are the perfect way to get in touch with the financial industry under the surface, regardless if you got a fresh interest in finance or have been stock picking since you were in the cradle. This years tours even resulted in some of our members gaining internships. There will be new trips next year – don’t miss the opportunity

ANTON LJUNG

/April/October/November

The Banking Tours

Every year LINC hosts several events that introduce students to the world of finance.


For the 11th time, the Investment Banking Forum took place on the 22nd of September. The perfect place for the participants to mingle and interact with future employers – and to get an insight in the bankers daily work. The day started off with an inspirational lecture by our main guest Sean George, former Head of CDS at Bank of America Merrill Lynch.

The participants were later on divided into twelve groups and were assigned five banks each, which all held in workshops. The workshops had different structures at different banks, containing, for instance, tasks and Q&A’s.

The following financial firms were represented at this years IBF: Citi Group, Bank of America Merrill Lynch, Nomura, Fidelity, BNP Paribas, SEB, Carneige, Nordea, Pareto Securities, DNB Markets, ABG Sundal Collier, Danske Bank and Handelsbanken. Investment Banking Forum traditionally rounded off with a dinner at Tegnérs Matsalar with entertainment performed by Lundaspexarna.

A special thanks to Nicholas Peebo and Sebastian Lindeborg together with the IBF-staff team which made this event possible.

GUSTAV EGESTEN

/September

Investment Banking ForumFor the third year in a row, Women’s Business Conference (WBC) was held for the most ambitious female students interested in finance at Lund University. This year SEB, Carnegie, Danske Bank, Swedbank and KPMG were the participating firms. The event was held on the 28th of April, a n d a t o t a l o f 4 0 s t u d e n t s participated. The day started with an interesting and mind-opening guest lecture by the chief economist of Nordea - Annika Winsth.

Later, the guest lecture was followed by interactive workshops with the firms, lunch and a mingle. During the day many new contacts for the future were made, and some of the participating students found their future employer. The event was finished of by a dinner at Tegners Matsalar. This year's WBC had more participating students and firms than ever. We see a growing interest in

finance among female student, which we are very happy about! Please check out the check out the LINC website for more information about the upcoming WBC 2018!

THEA NYRELL

/April

Women Business Conference


For the fourth time, Transaction Advisory Forum (TAF) took place at L u n d U n i v e r s i t y S c h o o l o f Economics and Management. At TAF, the participators are provided with an exceptional opportunity to network with representatives from Sweden’s leading corporate advisory firms. This years visiting firms were: Deloitte, Grant Thornton and PwC. Each firm held a workshop with

cases where the participants dealt with tasks these firms face at a daily basis. A great way to show your analytical skills in front of your future colleagues! The day ended with drinks and a three course dinner at AF-borgen.

ANTON LJUNG

/March

Transaction Advisory Forum


This fall LINC hosted an M&A-case to give members some practical training of valuation, strategy and presentation skills. The participating students took on the role of investment bankers, advising senior management of a large global entertainment firm on whether they should acquire a Swedish cinema operator and if so, how much they should pay for it.

The event gained much interest from economics and management students as well as aspiring engineers, so much so that the application process had to close early. The eight teams were each given a packet of information, a couple of over-head slides and 90 minutes to prepare a 10-minute pitch to the jury. The questions

given to the teams were both general questions about the industry and more specific ones, putting their accounting skills to the test. The teams had to decide for themselves how much of the information they had received was useful, and how much they could scrap.

The jury consisted of president John Kleven Falck, Head of Event Nicholas Peebo and former CEO of SF Bio Maria Skoglund. The teams were assessed in three different areas: the strategy they sug g e s t ed , t h e unde r l y i ng valuation, and how they presented it. The winning team’s members all got a spot on the Copenhagen Banking Tour.

THEA NYRELL

/November

The Case Contest

We hope to find you at our next event!


Interview Hansa Medical

Gustav Egesten interviews Emanuel Björne (Vice President, Business Development and Investor Relations) from Hansa Medical, and learns more about the company that has seen a growth of almost 5000 % in the last five years.

Taking Hansa Medical to the top – an interview with Emanuel Björne Hansa Medical AB (publ) is a biopharmaceutical company founded 2007 in Lund. The main focus of the company is to develop a novel therapeutic strategy to make it possible for more patients to receive kidney transplants. The Hansa Medical stock is one of the fastest growing (approximately 5 000% since 2014) on Nasdaq Stockholm OMX.

Emanuel, your position at Hansa Medical includes taking care of ”Business Development and Investor Relations”. Can you please describe your job? Today, we have approximately 14 000 shareholders and we are listed on Nasdaq Stockholm OMX (Mid Cap). Our shareholders are a mix of smaller private investors, institutions (mainly from Sweden, United Kingdom, and the United States) as well as family offices. A significant part of my job is to describe to present and future shareholders what clinical research we at Hansa Medical are focusing on, what potential benefit we can bring to patients and

how this potentially also can translate into becoming a good long-term investment i.e. by describing the results from our research and the potential market in order to be able to raise capital for our operations when necessary.

The last five years, Hansa Medical is among the biggest winners on the Swedish stock market with a growth of about 5 000%. How can this impressing journey be explained? During the last five years we have managed to bring a promising idea conceived in the laboratory into the


How IdeS acts on immunoglobulins (IgG). Intact IgG bind to foreign molecular patterns, for example a transplanted kidney. The binding activates the immune system and the kidney is rejected and has to be removed. Previously, the patient could not undergo a new transplantation because of pre-existing antibodies. However, treatment with IdeS cleaves the antibodies, making them inactive. This makes a new kidney transplantation possible. (the figure is used with permission from Hansa Medical AB)

products for market authorization. In the European Union there is one agency for evaluation of medicinal products (European Medicines Agency; EMA) that regulates for countries within the region. We believe IdeS potentially can offer significant cost savings for the healthcare systems and save lives as well as improve the quality of lives for thousands of patients. We believe t h a t f a s t a n d e f f e c t i ve I g G inactivation in transplantation and autoimmune diseases can be a potential bil l ion-dollar market opportunity.

IdeS was discovered by scientists at Lund University. What can you tell us about their research when finding it? And how does the enzyme work? I d e S ( a b b r e v i a t i o n f o r Immunoglobulin-degrading enzyme of S t r e p t o c o c c u s p yo g e n e s ) was discovered by three scientists at the Division of Infectious Disease at Lund University; Professor Lars Björck, Dr Björn Johansson and Professor Ul r i ch von Pawe l -Rammingen. They discovered IdeS in t h e i r r e s e a r ch o n G r o u p A streptococci while investigating how

these bacteria were behaving when interacting with the human immune system. This is actually a quite common bacterial pathogen that can cause both strep throat and skin infections. The immune system p r o d u c e s a n t i b o d i e s (immunoglobulins; Ig) that target foreign proteins and cells, for

clinic, demonstrating that this idea indeed seems to be an effective and safe drug in humans. This is a s i g n i f i c a n t s t e p f o r e v e r y biopharmaceutical company at an early development stage. We are not yet on the market with the product. There are st i l l studies to be performed and we need approval from the regulatory authorities. However, we have made good progress so far and that is what is reflected in the increased interest from investors.

The enzyme IdeS is Hansa Medical’s main project and the

basis for your drug development. How big is the economic potential of this drug once you have reached the market? The United States and Europe are our primary markets for this drug candidate, but of course, this treatment is to a large extent demanded in other geographical areas as well, such as Canada, South Africa, Japan, China and Australia to mention some. The reason why we primarily are focusing on the United States and Europe is that these are the most important markets and with centralized evaluation of medicinal


”There are no other companies engaged in the development of something similar”

protection and other forms of marketing exclusivity such as Orphan Drug Designation is important to us. We are uniquely developing these type of IgG-eliminating products. There are no other companies engaged in the development of something similar, which creates very exciting opportunities for us. We have a very strong IP-portfolio in this field.

example bacteria. When the antibody has bound to the bacteria, specific proteins (so-called complement) and specialized cells can recognize the bacteria as foreign and eradicate them. Lars Björck and his co-workers observed that the bacteria released an enzyme that cleaved the most prevalent antibodies, the IgG-antibodies, and thereby inactivating the IgG-antibodies. This is most likely a way for the bacteria to survive in the body, avoiding being attacked by the immune system. The scientists isolated the enzyme and named it IdeS. In several autoimmune diseases, the immune system mistakenly produces antibodies against the bodies tissues. These so-called autoantibodies can cause both acute and chronic disease.

Similarly, the immune system can deve lop ant ibodies ag a ins t a transplanted organ, that can trigger the immune system to reject the t r a n s p l a n t e d o r g a n . D e s p i t e immunosuppressive therapy, the transplanted organ can be recognized as foreign, resulting in rejection that can lead to loss of the transplanted organ. If the transplanted organ is a kidney, then the patient has to return

to treatment with dialysis. Patients in need of an organ transplant can also have pre-formed donor specific antibodies preventing the patients f rom be ing t r an sp l an t ed . I f t ransplanted , these so ca l led sensitized patients will face an immediate rejection. Using IdeS, the an t i bod i e s a r e “neu t r a l i z ed” immediately prior to transplantation and thereby enables transplantation for these patients. Also, other diseases where immunoglobulins are involved, such as antibody mediated rejections and acute IgG-antibody mediated autoimmune diseases, may be possible to treat

What are the possible threats for Hansa Medical, developing IdeS to a medicine? Do you have sufficient patent protection? Strong patent protection is always desirable in the biopharma business since it is so capital intensive. It takes a lot of investment capital in order to reach the market and the investors want to have some level of certainty that we will reach a profitable market if we manage to successfully carry through our clinical studies and launch a product. This is why patent


Is there a risk of serious side effects using IdeS as a medication? When developing a medicine, there are basically two things that you have to demonstrate, efficacy and safety. The effect is desirable since you want to improve the outcome for patients. With our medicine, we have so far demonstrated that we can enable kidney transplantations that are not possible today, with a favorable safety profile. The treatment with IdeS has made it possible for patients to replace long-term dialysis with kidney transplantation. Long-term dialysis is not only associated with increased r i sk o f acu te ca rd iovascu l a r complications like heart failure and stroke, but also makes it difficult to live a normal life. In our clinical studies, we have demonstrated that IdeS enabled kidney transplantation for all these treated sensitized patients.

Patents do not last forever, do you experience any time pressure? The patents usually last for 20 years, starting the day that you submit your patent application. We have also got

the oppor tunity to apply for Supplementary Protection Certificate (SPC), which is additional protection for another five years, so we are counting on approximately 25 years. We have several patent families protecting the use of IdeS or IdeS-like molecules. For example, the medical use of IdeS for the treatment and prevention of all commercially relevant IgG-mediated medical conditions which was filed in 2006, with potential patent protection beyond 2030. We also have additional IP filed more recently and we continue to add more IP to our portfolio as our research is making progress.

Since 2014, IdeS is in phase II clinical trials (treating a limited number of patients). How can this be interpreted? How close are you actually to bringing forward a medicine? Right now, we have completed two phase II studies and we have three additional phase II studies ongoing. We are developing IdeS for treatment of rare transplant indications and rare autoimmune diseases and our aim is to submit an application to get our

medicine approved based on phase II-studies before the end of the year, and potentially get an approval by the end of next year. We hope to be on the market by 2020.

Today, you are located in Lund where you have around 40 employees. In the Scandinavian biopharma industry there are for example Astra Zeneca and Novo Nordisk, each having in the order of 40 000-50 000 employees. How do you envision the possibilities for you to establish Hansa Medical in the pharmaceutical market among these giants? We are developing IdeS and similar products for the treatment of rare autoimmune diseases and rare transplant related indications. When developing dr ugs for such a specialized market place it is not in

any way unreasonable to consider bringing a product to the market on our own. We of course need to be able to attract the necessar y investment capital in order to continue grow our company. If we are successful with our clinical studies and our regulatory strategy, I think we have a very attractive opportunity to launch on our own and continue to build strong commercial presence and medical affairs capabilities both in the US and in Europe and potentially become a profitable and g r ow i n g S we d i s h b i o p h a r m a company with lifesaving products on the market.

GUSTAV EGESTEN


A quintessential dimension of LINC’s long term vision to become the most renowned Finance Society in the Nordics is to provide students with state of the art practical knowledge and experience during the university years. With this vision in mind – what is more natural than developing an asset management division within the organization?

LCAM’s purpose is to actively manage the excess liquidity of LINC in a low r isk por tfol io. The investment philosophy is based on asset allocation rather than asset selection. LINC Magazine has had the opportunity to have a chat with fund manager, Erik Ivarsson.

“The idea behind LCAM has been around for several years in LINC, but 2016 was the year we chose to materialize the idea. As the number of members of LINC continued to grow in 2016, our events have

become larger and the financial margin of safety is high, we concluded that LINC could offset some of the excess liquidity to this project. This, combined with the success in building up a team of students with relevant academic knowledge and with experience from asset and portfolio management, lead to the conclusion that the timing of this project was right.”

Now, the d iv i s i on ha s been operational since the autumn of 2017. “LINC still has a promising outlook in terms of member base and financial position, so the prerequisites for LCAM is very promising going forward” says Erik.

LCAM has created an investment policy document, which the executive board has approved. The investment team consists of a couple of portfolio analysts, primarily focusing on three areas: fixed income, equities

LINC Asset Managementand hedge funds/multi asset/risk premia strategies.

On top of that, LCAM has a close collaboration with LINC R&A, especially the Investment Research team, which publishes investment research reports on a regular basis. Through this interaction, LCAM gets interesting outlooks for different asset classes, markets and events, which in turn are used for investment decisions.

“We also collaborate with the fundamental team in R&A. This means an exchange of knowledge

concerning trends and themes of the Swedish stock market. Since R&A has been built up to the extensive organization it is today, there were synergies to harvest through this exchange.”

The portfolio consists of mostly stocks and fixed income securities, but it also has room for alternative investments such as hedge funds and capital protected investments. Regardless of asset class, it is by great importance that the investment follows an ethical profile, since this is a strong trend in the industry. The portfolio does not allow any holdings


LINC Magazine 32

in companies engaged in unethical activities such as unhealthy products, weapons and activities that are env i ronmenta l ly har mful . Al l inves tments must fo l low the P r i n c i p l e s f o r R e s p o n s i b l e Investments (PRI) of UN and by that, LCAM is equipping students with some knowledge of sustainable financial investments.

“First and foremost, we consider it to b e i m p o r t a n t t o i n t e g r a t e sustainability in our operations, but there is also a strategic dimension to the ethical profile. As responsible investment is an increas ingly i m p o r t a n t e l e m e n t a m o n g institutional asset managers, it was natural to learn about this and incorporate it in our investment process. We believe that contributing to sustainability is important for the students who get involved in LCAM.”

LCAM is keeping a low risk profile with a required rate of return on 4 % + STIBOR, and a risk level, measured as maximum drawdown, of maximum 5 %. On top of this, LCAM employs a volatility cap, which means that the allocation to

riskier asset classes such as high yield and equities is contingent upon the markets current fluctuations. LCAM aims to benefit students with a passion for finance and an eagerness to have a steep learning curve throughout their university years. To have an asset management division within LINC will most certainty contribute to the good reputation the students in LINC already have within the finance industry and will be an important piece of the work of LINC, for many years to come. It is by great interest we will follow the development of LCAM!

GUSTAV EGESTEN

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Interview Sean George

Meeting Sean George; Main Guest at IBF 2017 Sean, you obviously had a very interesting career with plenty of titles of dignity within finance, but let go further back in time. What can you tell us about your background? I was born in New York but raised in Saint Croix in the U.S. Virgin Islands. I later on moved to Florida where I lived until I turned twelve. My mother then met a Swedish guy, which we moved to Sweden with. We lived in a small town called Hindås, which is located outside Gothenburg.

Eventually you started at the University, what can you tell us about your academic merits?

I studied in Gothenburg, two years at Johnson & Wales University and one year at Handelshögskolan - where I received my Bachelor’s degree in Marketing in 1996.

Would you say a Master’s degree is necessary in these days? Not at all if you’re asking me. I just want my colleagues to have a killer instinct and stand by my side when bullets start to flying against us. When that happens, I don’t care if you got 180 credits or 300. It’s the same principle regarding your grades.


Sean George, currently CIO at Strukturinvest, tells us about his background and how he ended up on Wall Street after graduating.

You then received your Bachelor’s degree. What did you do next? I took the next plane to New York – with the aim to work on Wall street. I got an interview with Bankers Trust quite immediately through a friend who recommended me. The woman whom interviewed me told me straight forward;

”Sean, you’ll never get a job here on Wall Street. I’m just doing my friend a favour interviewing you. Your CV is just too bad”.

Later that week I got two job offers. I called the woman who interviewed me and told that to her.

Obviously, it turned out well! You’ve worked for 20 years in the finance industry in New York at different firms (e.g., as bond broker and portfolio manager). What’s the trick behind it? It’s really about making as much money as possible for the firm you work for. Besides that, it’s important to get along with your colleagues on a

social plan. But stay perceptive. It’s not uncommon that people in your environment tries to get you fired; because they want your job. But I did well, and if you do, eventually you’ll get headhunted from one job to another.

Which leads my into the next topic, you worked as the Global CO-head of CDS at Bank of America Merrill Lynch at a very interesting time (2006-2009). What can you say about your time there? Really, whatever adjective you can come across would be a good description of my time at Bank of America Merrill Lynch. It was a complete ”world war” over there. The worst year of the crisis, my colleagues and me made over $450m and didn’t get a single dollar in bonus due to the crisis.

What would say is the key insight from the financial crisis that erupted in 2007? That’s the worst thing. We haven’t learned a single thing. It will be as much blood the next time.

”You’ll never get a job on Wall Street”

You emphasize the importance of the diversity of thoughts in the finance industry. Can you explain what you mean? You know, I’ve been in this industry for a while. At every place of work, my colleagues have had the same background, the same interests and the same type of haircut. My major concern about this is; how should we be able to move forward, when we all have the same perspectives? But it’s important to know this – this industry is not made for everyone. You should be prepared for long hours. Everyone is not made for handling it.

Today you’re working at Strukturinvest as the CIO, what are you looking for at job- seekers? I don’t really care about your grades. In that perspective I differ a lot from the old and conservative banks. For example, Goldman Sachs can recruit whoever they want – and they use the

grades as an method of exclusion. I see it in this way: I don’t care how good your grades are, the school can’t teach you the killer instinct I’m looking for in an employee.

So what would you say is the key advice to todays student to get attractive in the labour market? Do as many internship as possible, don’t be afraid to learn new things and exchange information with your co-workers. I would also like to recommend you to get engaged as much as possible. LINC is a perfect example of this – where you have the oppor tuni ty to network with ambitious people and absorb new infor mat ion . The g rades a re secondarily. The hardest job to get is always the first one, and once you have it, and you perform well – you’ll eventually climb from one job to another.

GUSTAV EGESTEN


We share your ambition to succeed

Ambition is something we share. With our customers. Our people. And the communities around us.

Danske Bank is a challenger on the Swedish market, with a strong ambition to grow. We’re a community of 1,500 people who together are building an even more innovative, agile and inclusive culture, in order for us to create value for our customers.

We see change as an opportunity to develop and grow, and curiosity and drive is rewarded. Together we’ve embarked on a journey to push the boundaries of banking.

Do you want to join us?

Explore your opportunities at danskebank.se/karriar

At Danske Bank, ambition is something we share. With our customers. Our people. And the communities around us. We are on a journey to push the boundaries of banking and make continuous improve ments in how we serve our customers. Now’s the time to join our international community of 19,800 colleagues.

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210x297_Join Danske Bank_share your ambition_18.indd 1 26/03/2018 15.52

Dedicare AB offers staffing of doctors, nurses, social workers, and educators. The company operates in Sweden and Norway.

Wage drifts amongst nurses expected to stifle profitability. A high demand for Nurses during 2016 resulted in their wages rising 1,1 p e r c e n t a g e m o r e t h a n t h e compensation from the framework agreements. Continued wage drift is expected, which estimates to lower the profitability. Personnel costs accounted for 70,5 % of the company’s costs last twelve months.

Low barriers of entry expecting to increase competition. The market for staffing services within in healthcare and social services requires low amounts of capital tied up. Ten

comparable staffing-companies within social services presented an average EBIT-margin of 21,1 % 2016, compared to Dedicare’s 10,9 %. Dedicare does not reveal the margins within segments, but before the startup of the staffing within social services, the EBIT-margin amounted to 6,9 % 2014. This gives proof the margin within this segment is higher.

Social services segment estimated to grow slower going forward. Staffing of social workers has since the start of 2015 grown fast, fueled by large amounts of asylum seekers. In 2016 the segment accounted for 29 % of revenues, whilst growth in other segments amounted to – 7,1 % annually 2015-2016. Between 2017E – 2020E the amount of asylum seekers is estimated to be reduced by

45

R&A-team brings us: Dedicare

Lack of nurses, operational efficiency and a yield of 5 % can support the current valuation. In Sweden and Norway, there is a lack of nurses. Private companies offer 7,0 % higher wages in comparison with the counties, making them a more attractive employer. With a dividend yield of 5 %, these factors are expected to give some support for the stock price going forward.

In a base case revenue growth is estimated to grow at 10,6 % CAGR 2017E-2019E. Due to continued wage drifts and rising competition, the EBIT-margin is projected to fall from 10,9 % 2017E down to 8,9 % 2019E. Based on relevant peers, a target EV/EBIT-multiple of 8,7x 2019E is determined. Weighted with a DCF-valuation, a target price of 90,4 SEK is implied, giving a potential downside of – 23,0 % of today’s price.

In a bull case revenue growth is estimated to amount to 16,4 % CAGR 2017E-2019E due to high demand for staffing. The EBIT-margin is expected to amount to 11,1 % 2019E. The target multiple is set to 9,6x 2019E. Weighted with DCF valuation, it implies a stock price of 136,6 SEK, giving a potential upside of 16,3 % of today’s price.

In a bear case, the action from SKL expects to prove successful, which in turn lowers revenue growth. Revenue growth is expected to amount to 0,4 % CAGR 2017E-2019E. Low barriers of entries and rising competition are estimated to lower the EBIT-margin towards 7,9 % 2019E. The target multiple is estimated to 7,5x EV/EBIT 2019E. Weighted with the DCF-valuation, it implies a target price of 59,2 SEK, giving a potential downside of –49,6 % of today’s stock price.

84% compared to 2015, reducing demand for social services. According to dedicare’s framework agreements with SKL, municipalities pay 127,0 TSEK monthly for a social worker. A social worker employed directly, with 10 years of experience costs 47,7 TSEK on average. The h igh discrepancy in costs is expected to hit profitability and the EBIT-margin is estimated to amount to 8,9 % 2019E.

The Counties strive to remove the dependency of staffing services within healthcare. In January 2017, an action was taken from SKL, to remove the dependency of staffing services until 1st January 2019. Historically, similar projects have failed. Region Skåne, has in Q3 2017 reduced their staffing expenses by approximately 40 % compared to Q3 2016. This proves that the action might have an effect.


The Swedish AP funds are public pension funds that have been active since the 1960s. They are separated into seven funds with different level of risk and investing strategies. On the 18th of October, three representatives from the AP funds – Anna Fall, Peter Schlegel and Marta Rydell, were holding a guest lecture for the LINC members.

What do you do at the AP funds? We’re seven different divisions at the AP funds. The first to the fourth fund manages the capital reserves of the general pension system. AP6 (the sixth AP fund) is doing the same, but with unlisted companies. We’re managing approximately 1400 billion SEK.

What can you tell us about the role of premium pension?At AP7 we’re managing the premium pensions and is competing with around 800 fund companies. We’re the governmental pre-selection, so if you’re not doing an active choice and deselecting us, you’ll have us managing your premium pension automatically. Everyone in Sweden that has been working and paying taxes is a part of this.

A recurring feature of todays lecture was the importance of investing ethically. What do you mean by this? With ethically investments, we simply mean more sustainable investments. For example, at AP7 we always asking ourselves the question; how can we, through our ownership in around 2800 companies, affect the market to go in the ”right” direction? With our amount of capital we get an important influence.

How does this influence work in practice? Since we have a lot of capital, our voice at AGMs is very important with our votes. We also work with a tool, which we call ”blacklisting”. That’s a good way of getting the attention of companies and gives a signal to the public. Sometimes we also even operate legal processes if we feel that a company have breached the shareholders interests. For example we sued Facebook, when Mark Zuckerberg wanted to decrease the input of shareholders in the company – and we won this case.

Would you say that return on capital is positively correlated with sustainability? That is our fundamental conviction. The companies that care about sustainability are in general minimizing their risks in plenty of aspects. We would say that there in no way is a contradiction between return on capital and sustainability – more like the other way around.

What is the AP7 Såfa – the life cycle profile?

AP7 Såfa is a complete portfolio, containing stocks and interest-bearing assets. The idea behind it is that while you’re young, you’ll have a bit more risky portfolio stocks only – and then when you’ll get older, the portfolio will successively go over to interest-bearing assets, which gives you less risk. Our returns in AP7 Såfa have performed very well historically.

Lastly, you’re looking for students to work with you. What can you tell us? We’re always looking for freshly graduated students to work with us, both in Stockholm and Gothenburg for full time. Apart from this we also have some part time job and internship with both economic and technological orientation.

Thanks to: - Anna Fall – Communication Manager (AP1) - Peter Schlegel – Project Leader in Communication and ownership (AP7) - Marta Rydell – Risk and yield analyst (AP7)

DAVID HASSELSTRÖM


Guest lecture with the AP funds

We would like to congratulate…

The hard work from our members always pay off in one way or another – not only by improved analytical skills, but by the network they create through our events and trips we arrange each year. Each year, many of our members receive offers from leading firms in the financial industry, both in Sweden and abroad – which make us proud to say that we’re the leading student association within finance in Sweden.

This year, we would like to especially congratulate the following members:

❖ Alex Mikaelsson, Full time – Goldman Sachs ❖ Cecilia Skoglund, Summer Intern – Goldman Sachs ❖ Sofia Nilsson, Summer Intern – Goldman Sachs ❖ Johan Eriksson, Summer Intern – Goldman Sachs & Off-cycle Intern

FSN Capital ❖ Joel Bluhme, Summer Intern – Goldman Sachs ❖ Erik Ivarsson, Full-time – BNP Paribas ❖ Johanna Lägnert, Summer Intern – BNP Paribas ❖ Carl Dalerstedt, Summer Intern – BNP Paribas ❖ Gustaf Nordin, Spring Intern – BNP Paribas ❖ Gustav Furenmo, Spring Intern – BNP Paribas ❖ Daniel Ströbeck, Off-cycle Intern – Morgan Stanley ❖ Filip Eriksson, Spring week – JP Morgan & Summer Intern – EF ❖ John Kleven Falck, Summer Intern – Nomura & Part-time – Polaris

Private Equity ❖ Wilhelm Sondén, Spring Intern – Nomura & Summer Intern – ABG

Sundal Collier

❖ Sebastian Lindeborg, Summer Intern – Fidelity Investments ❖ Kalle Ågren, Full-time – Barclays ❖ Daniel Tegmark, Off-cycle Intern – Deloitte ❖ Samuel Hammarling, Off-cycle Intern – Deloitte & Summer Intern

– Beringer Finance ❖ Jesper Carlsson, Full time – PWC ❖ Kevin Nilsson, Off-cycle Intern – ABG Sundal Collier ❖ Staffan Bülow, Off-cycle Intern – ABG Sundal Collier ❖ Olof Ståhl, Off-cycle Intern – ABG Sundal Collier ❖ Hugo Tedroff, Off-cycle Intern – ABG Sundal Collier & Summer

Intern – Nordea ❖ Daniel Ströbeck, Full-time – Investor ❖ Teodor Sjöberg, Spring Intern – Credit Suisse ❖ Robin Marklund, Off-cycle Intern – Nordea ❖ Amelie Larsson, Off-cycle Intern – Nordea ❖ Olle Göransson, Summer Intern – SEB ❖ Henrik Sundström, Summer Intern – EF ❖ Thea Nyrell, Summer Intern – H&M ❖ Reda Ben Larbi, Full-time – GP Bullhound ❖ Emilia Hemmesåker, Full-time – EY ❖ Dante Haques, Off-cycle Intern – Whispr Group ❖ Martin Nilsson, Full-time – Nyhetsbyrån Direkt ❖ Nicholas Peebo, Summer Intern – Strategy&


magazine · 2018-07-11 · -18 magazine linc events - p.21 get introduced to the world of finance...

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