Productivity | Strategy | Profitability
Productivity | Strategy | Profitability
Bjorn Wallin - Fredrika Bremer School
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Founder & CEO, Recall Capital SE
An interview with Bjorn Wallin, Visionary CEO & Founder, Recall Capital SE
Our dedicated interview with Bjorn Wallin, CEO of Recall Capital SE, takes an exclusive peek behind the operations of an innovative firm that analyses and develops mathematical models for financial trading, specialising in equity trading for small and medium-sized listed companies and procuring their best investments within the stock market. We sit down with the mastermind behind the firm that is engineering the success of small and mid-cap companies in Sweden.
Bjorn Wallin CV
Fredrika Bremer School
2013 - Founded Recall Capital
2013 - Chairman of the Board for Scandinavian Clinical Nutrition AB
2012 - Member of the Board for Infrastructure Management Group Nordic AB
2011 - Member of the Board for Pureload Inc IT consulting firm
2010 - Member of the Board for GXG Markets AS
2008 - Adjunct member of Corporate Governance Board of Sweden
2007 - Chief Financial Officer, Meltwater Group
Mr. Björn Wallin is Founder of Recall Capital Nordic AB and also serves as its President and Chief Executive Officer. He served as the Head of Listing Equities of Nordic Growth Market NGM AB.
Mr. Wallin served as Chief Executive Officer of Nordic Growth Market NGM AB until April 8, 2009. He served as a Director of GXG Markets A/S. Mr. Wallin served as Chairman of GXG Global Exchange Group AB.
Equity Markets Trading
EG: What unique strategies do you implement to ensure that clients gain a good return on capital deployed?
Bjorn Wallin: Almost every company (SME) that goes public does this because they from time to time need to get funded. The share is a great tool for that, but has to be well traded to become efficient. This is where our journey with our clients begins. So our trading facility normalising the pattern in a share and making it more recognisable- which will lead to more shareholders, is essential for more trading. In other words, we offer the best possible way for investors to get themselves funded in a new and efficient manner. At the end of the day, it will all create value for shareholders which in the end, makes everyone a winner.
EG: How has your experience as CEO, CFO, head of M&A and board member for numerous listed Swedish companies deepened your insight into the equity markets?
BW: To understand the daily situation of a listed company, it is essential to understand and to create appropriate solutions with as high efficiency as possible. Actors in the financial markets usually offer solutions which best suit themselves, so there is a position on the market that takes the side for the companies.
EG: What do you think investors can do to boost profitability in a historically unprecedented era of Zero Interest Rate Policy? (ZIRP)
BW: This is an interesting question. When we talk about SMEs, the investors are almost only retail investors. For this category of investors, I believe the best way is to find well-traded companies within the SME-sector. SMEs that are working to factor these kind of questions into the equation in relation to their situation in the financial markets, are probably a good investment.
EG: Looking at the Yield Curve, how might a raise in interest rates affect investors, and what can Recall Capital do to assist clients?
BW: Not much really. The SME sector does not work in the same way as the Large Caps. For example, SMEs level of profit doesn’t have any impact on trading volume. The volume is essential for the value, so the big question in this case is rather - how to increase the trading. For companies not being profitable, our figures indicate that access to funding is essential for the trading volume. So depending on every SMEs stage in their development and on the status of their plan, different things have an impact on them. However, companies having a market cap of more than £200M will probably be affected by an increased interest and more cautious view from shareholders.
EG: What implications do you see the proliferation of cryptocurrencies having on both the domestic and global financial markets in the near future?
BW: From a SME perspective, not very much, but having said that, I think the trading of SMEs will look different within a few years which will open up blockchain technology. If we talk about cryptocurrencies as a rate of transfer from existing currencies into a value, we have created a new platform where everyone in the world can trade within SMEs, anywhere on the globe.
EG: And as we have seen an increasing digitisation of Sweden’s economy in recent years, how may such blockchain based technologies be implemented with Recall Capital?
BW: Blockchain will be critical for all SME trading in the world and I would be very glad if Recall Capital would be invited to participate in these discussions.
EG: How would you compare Recall Capital’s value proposition to other competitors in this market?
BW: I think we have an independent offering, because we don’t have a risk in lending to companies. Other actors usually are under more pressure to sell shares in the market, which may the share, although we do not use that model at all.
EG: What emerging trends do you see on the horizon in the next five years for investors who may wish to maximise returns while mitigating risk?
BW: Almost everyone agrees that the SME sector is important for prosperity now and ahead. I really believe that the SME sector will be a good sector to invest in, especially after the introduction of a global trading platform in combination with the new Blockchain-based technologies. This makes it easy for investors to combine certain information with trading patterns to identify a basket of companies that fulfils the needs of investors.
EG: How would you define the composition of a well-diversified portfolio of equities, and how does Recall facilitate this?
BW: Since we only work with SMEs, I basically think that our customers are the ones having trading, value and the financial markets high up on their agenda. These are actually good signs. Also, if the management of a company performs well and the board of directors are able to convert whatever the management performs into shareholders value.
EG: Tell us more about how your proprietary service Q2Trade™ may benefit investors?
BW: The main purpose of Q2Trade is to increase the number of shareholders. We do that by normalising the trading pattern compared to other similar companies. When this occurs, the trading volume will then begin to increase.
EG: You work with 40+ firms in Sweden listed on established markets. What does the future hold for equity markets trading?
BW: Since we are an innovative company, we will never give up on creating new solutions. Because Sweden has become so successful, we are now looking to introduce our existing services to new clients in global markets. The next service will be introduced first in Sweden, but will then be expanded into new markets.
EG: What fundamental changes have taken place in the global stock markets in current times, and how would you compare elements from the past with the current state of affairs for traders in the markets today?
BW: The stock market has evolved from being fundamentally driven and becoming more controlled by emotions and irrationality. This change has gradually taken place since the 1987 crash, ultimately having its foundation in the growth of information technology and the development of internet related technologies that we have had ever since. Just these aspects alone have fundamentally changed the entire system. In the SME sector, no one invests in order to obtain a long-term dividend on shareholding, but it is preferable to have value growth on holdings. The internet has now enabled retail investors to constantly monitor and be connected to the stock exchange and to always have access to the same kind of information as professional investors. This of course, also makes the market far more transparent. Now we know that there is also a new technology on the way to the market - blockchain. This technology opens up for an international market in a completely new way. Reasonably, the SME market will be introduced to this technology before the larger companies take hold. Hence, a barrier to increasing local trade would be overcome and it will now be possible for trade to execute freely across borders under a common kind of currency. Today, this is almost impossible within the context of the current structure that we now have in these markets. This new technology could significantly change everything in as revolutionary a manner as did the emergence of the internet in the 1990’s, thus stimulating even more trade, which would be invaluable for SMEs, whose trading activity in relation to bigger companies would then begin to increase.
EG: Tell us more about the innovative On Tap financing solution for SMEs?
BW: On Tap is an innovative and new service that offers SME companies financing over the course of time. The purpose is that management and board directors are more likely than not, simply better at developing and running their companies than funding them. This alone is a major factor in market uncertainties. Due to the fact that the companies are left isolated because no one else finances this sector, the solutions in these situations are generally similar, as the companies themselves do not know any better. It is no surprise that they are not experts in this area because frankly, they are running a completely different type of business.
Instead, the companies are left in the hands of different actors who, in essence, all seek a path that is simple, fast and yields quick results for these advisors. We do not say the solutions are worse than others, we just say that sometimes the ‘‘fast and easy way’’ is not always the best route for the companies involved. Perhaps the most important conclusion is that those companies that are already starting their work to normalise their trading patterns will also be the companies that are most likely to succeed, even when new technology enters into this SME sector.
EG: What crucial factors are important for companies to have access to capital?
BW: One of the most important factors for a company to have access to capital on a continuous basis, is to ensure that trading in the stock is at a reasonable level. As a first measure, the share must be normalised in relation to other similar companies’ stock trading. They should not be compared to the big indices, but instead to other similar companies.
EG: What is the relationship between shareholders and companies stock value?
BW: The number of shareholders is a decisive figure for which trading volume the stock has. The simple principle is that the more shareholders you have, the more trading you get. Equally given, the more trade you have, the higher the value. For companies that have not yet achieved PoC status, a shortcut to better value ensures ongoing access to capital. Thus, companies can now work more methodically to test whether their business model has viability. EG
It doesn’t matter how fast you run, if you run the wrong way!
Make sure you know where to run.
By doing things differently the SMEs would generate prosperity.
About Recall Capital
Recall Capital Nordic AB analyses and develops mathematical models for financial trading. The company is based in Täby, Sweden. The company operates as a subsidiary of Recall Capital Group SEZC.
Mr. Björn Wallin is Founder of Recall Capital Nordic AB and also serves as its President and Chief Executive Officer. He served as the Head of Listing Equities of Nordic Growth Market NGM AB, and is a board member of over eight successful companies. For more information on Recall Capital SE, please visit: www.recallcapital.se