Exactly ten years ago, two brothers on the outskirts of Copenhagen set out to build their own asset management firm. Their idea was straightforward but ambitious: develop a systematic model capable of dynamically adjusting equity exposure and portfolio risk based on changing market conditions. That vision became TIGER, the quantitative engine that still underpins the investment philosophy of boutique manager Othania. A decade later, TIGER remains the foundation for several of Othania’s strategies, complemented by additional funds designed to broaden the firm’s product range.
“We were 26 and 28 years old, full of drive,” recalls Vincent Dilling-Larsen, founder and CIO of Othania. “Even though we had three to four years of experience from Nykredit Asset Management and about two and a half years as self-employed before launching, we must admit we were somewhat naïve about what we were getting into.”
With no institutional seed capital or large anchor investors, the brothers launched their first fund, Othania Invest, with DKK 2.2 million raised from friends and family. A few years later, at the end of 2018, they introduced a second fund built on the same TIGER model. The model rotates between being fully invested in equity ETFs or bond ETFs, depending on its assessment of whether overall market risk is likely to rise in the coming month. The allocation signals are derived from leading indicators covering economic activity, interest rates, and equity market dynamics.
“A combination of strong calls from the TIGER model and supportive financial markets led to a sharp increase in assets under management and created room to consider new strategies.”
“A combination of strong calls from the TIGER model and supportive financial markets led to a sharp increase in assets under management and created room to consider new strategies,” says Dilling-Larsen. In 2020, the team expanded the platform with Othania Balanceret Makro, introducing a more diversified portfolio that complemented the TIGER strategy. Later, they developed a strategy aimed at replacing bonds as the defensive component in traditional portfolios. That concept evolved into Othania Stable Investering, an all-weather approach with equal-weighted exposure across five asset classes: equities, global investment-grade bonds, precious metals, CTA strategies, and long-volatility strategies. Today, Othania manages approximately DKK 600 million on behalf of a broad base of clients.
“It has been an incredibly exciting journey, with significant highs and deep lows – moments when everything felt impossible – and yet we always found a way forward.”
“And voila, before you know it, ten years have passed as a self-employed manager,” Dilling-Larsen reflects. “It has been an incredibly exciting journey, with significant highs and deep lows – moments when everything felt impossible – and yet we always found a way forward,” he adds. “We are grateful for the trust our clients and partners have shown us over the past decade. Now we look forward to the next ten years.”
