What is AKO Capital?
Based in London, AKO Capital stands out as one of Europe’s leading investment partnerships. Founded back in 2005 by Nicolai Tangen, this firm manages approximately USD 20.3 billion across both long-only and long-short equity funds. The core belief? That the best way to create strong risk-adjusted returns over time is by owning the best assets for the long haul. AKO Capital’s approach is rooted in a rigorous and proprietary bottom-up investment process, aiming to build portfolios that blend excellent economic characteristics with outstanding management. Their investor base is long-term and includes some of the world’s top endowments, charitable foundations, institutional investors, and sovereign wealth funds.
Main Benefits of AKO Capital
Here are some key figures and facts that highlight the strength and reputation of AKO Capital:
- Manages approximately USD 20.3 billion in assets
- Founded in 2005 by Nicolai Tangen
- Initially focused on European equities, expanded to Global equities since 2013
- Awarded ‘Best European Equity Fund over $500m’ in 2012 by Eurohedge
- Multiple nominations for ‘Best European Equity Fund’ and ‘Best New European Fund’ between 2006 and 2018
- The AKO Global Fund won ‘Best Global Equity Fund over $500m’ in 2019
- The AKO Global UCITS Fund won ‘Best Global Equity Fund – 1 Year’ and overall ‘Fund of the Year’ in 2018
AKO Capital’s Investment Philosophy
At the heart of AKO Capital’s philosophy is a focus on great businesses. They seek to align with the best quality listed companies worldwide — those that can grow sustainably, faster than the economy or their peers. These companies have true pricing power, enjoy recurring revenues, and are able to invest counter-cyclically during downturns, which strengthens their long-term advantages. Importantly, AKO only invests where the sustainability of the business model is clearly understood. The firm believes that quality businesses will outperform over the long term, benefiting from the compounding of earnings. And it’s not just about the companies themselves — quality management teams are crucial. AKO builds strong, supportive relationships with these teams, sharing unique insights from their research process.
AKO Capital’s Strategy
The investment strategy at AKO Capital is driven by a proprietary, fundamental, data-driven, and multi-disciplinary research process. Experienced equity analysts are backed by specialist groups focusing on forensic accounting, behavioral intelligence, interview training, data science, digital analytics, and market research. Each team brings an independent perspective to identify and underwrite the best quality companies. The firm maintains a long bias with market hedging — aiming to beat the market when it rises and reduce drawdowns when it falls. Rather than trying to protect against small market moves, AKO uses put options as a hedging overlay. This approach reflects their goal of consistently good returns.
Alignment with Investors
AKO Capital’s alignment with its clients is a key part of its identity. Many of their investors are long-term players themselves — foundations, universities, hospitals — investing to support regular charitable disbursements from perpetual capital. The largest owner of AKO Capital is the AKO Foundation, a charity, and the partners of the firm are significantly invested in the funds alongside their clients. This shared commitment underscores the firm’s dedication to long-term value creation and responsible investing.
Project Impact: Sustainable Development Goals (SDGs) Linked to AKO Capital
- SDG 8: Decent Work and Economic Growth — by promoting sustainable economic growth through quality investments
- SDG 9: Industry, Innovation, and Infrastructure — supporting innovative and resilient companies
- SDG 12: Responsible Consumption and Production — investing in companies with sustainable business models
- SDG 17: Partnerships for the Goals — collaborating with long-term investors and charitable foundations
Expanding Horizons: From Europe to Global Markets
While AKO Capital started with a focus on European equities, since 2013 it has expanded to managing funds dedicated to Global equities. This shift has created a valuable cross-pollination of insights and analyses, benefiting all their funds. The global approach allows AKO to tap into a wider universe of quality companies and diversify opportunities, all while maintaining their rigorous investment standards and long-term focus. It’s a dynamic evolution that keeps the firm at the forefront of equity investment.
