The Trashbag Special Fund is a distinct segment of the fund’s overall investment strategy, serving as a repository for assets that have underperformed or deviated from their expected investment thesis. This dedicated foundation plays a critical role in risk management and portfolio optimization.

Purpose of the Trashbag Fund

Risk Mitigation: To isolate assets that no longer align with the fund’s strategic objectives, mitigating their impact on the overall portfolio.

Performance Management: To manage assets that have disappointed in terms of performance or deviated from their projected growth path, ensuring they do not adversely affect the fund’s target returns.

Criteria for Asset Inclusion

Underperformance: Assets that consistently fail to meet their performance benchmarks or show a prolonged downward trend are considered for inclusion.

Deviation from Investment Thesis: Assets that diverge significantly from their original investment thesis, including changes in project scope, market position, or technology, are earmarked for the Trashbag Fund.

Portfolio Strategy Misalignment: Assets that no longer fit the evolving strategic direction of the fund due to changes in market dynamics or fund objectives.

Exclusion from the Trashbag Foundation

Complete Closure of Asset Position:

• When it’s strategically beneficial to fully exit a position, either due to further decline or to prevent additional losses.
• Decisions are based on thorough market analysis and risk assessment.

Significant Project Changes:

• Major alterations in the project’s operation, like changes in leadership, strategic direction, or repositioning.
• If such changes result in a renewed, attractive investment thesis, making the asset a viable candidate for the main portfolio once again.

Management and Review Process

Regular Assessment: Assets in the Trashbag Foundation are regularly reviewed to assess their current status and potential for reintegration or exit.

Dynamic Decision Making: The Portfolio Committee makes informed decisions on whether to retain, exit, or reintegrate assets based on ongoing analysis and market developments.