- Advertisement -

Related

Cevian Capital: “Constructive Activism”

Powering Hedge Funds

Stockholm (HedgeNordic) – Cevian Capital, the largest activist hedge fund in Europe with $15.4 billion is assets and which counts Carl Icahn among its investors, has a calm, behind-the-scenes approach and uses public pressure as a last resort, according to a just-published profile by The Economist. The Swedish fund, which was founded by Christer Gardell and Lars Forberg, employs a form of “constructive activism” which focuses on only a dozen companies at a time, an approach the founders employed during their time together at Custos, a listed investment firm.

“Sclerotic companies abound in Europe,” Mr Gardell told the Economist. Nevertheless, he sees advantages in Europe’s culture of corporate governance for an activist fund like his, for example in the process of obtaining a board seat, which is easier by comparison to in the United States. Cevian’s typical ownership stake is between 5 and 20%, and it operates mainly in the Nordics, Britain, Germany and Switzerland, preferring to avoid southern Europe.

Cevian is known for splitting up companies, believing that conglomerate structures can be too expansive and that splitting them up can benefit both managers and shareholders. Its separation into two of the Cookson Group, a British industrial firm, for example, more than doubled the combined value of shareholders’ investment. Despite some opposition, Cevian is attempting to repeat the feat at Volvo, Bilfinger, Ericsson, and others.

Cevian returned 19.4% in 2016. Read the profile in The Economist here.

 

Picture: (c) Christian Delbert—shutterstock.com

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Glenn Leaper, PhD
Glenn Leaper, PhD
Glenn W. Leaper, Associate Editor and Political Risk Analyst with Nordic Business Media AB, completed his Ph.D. in Politics and Critical Theory from Royal Holloway, University of London in 2015. He is involved with a number of initiatives, including political research, communications consulting (speechwriting), journalism and writing his post-doctoral book. Glenn has an international background spanning the UK, France, Austria, Spain, Belgium and his native Denmark. He holds an MA in English and a BA in International Relations.

Latest Articles

PIMCO: Similar Yields, Better Risk Profile in European High Yield

The U.S. high yield market has long been regarded as the global benchmark: deeper, more liquid, and broader in sector composition. For many allocators,...

Avoiding the Echo Chamber: Kraft’s Playbook in Tighter High-Yield Market

Delivering strong returns during a market rebound is one thing. Preserving performance momentum once spreads tighten and dispersion fades is another. That was the...

Tidan Deepens Volatility Arbitrage Expertise

Tidan Capital has strengthened its volatility and options arbitrage platform with the appointment of Laurent Keller as Senior Portfolio Manager. The Stockholm-based hedge fund...

Two Brothers, One Model, Ten Years: The Evolution of Othania

Exactly ten years ago, two brothers on the outskirts of Copenhagen set out to build their own asset management firm. Their idea was straightforward...

Rare Valuation Gap Between Small and Large Caps

Over the past five years, Swedish small caps have oscillated between a 10 percent premium and a 10 percent discount relative to large caps,...

Protean Eyes Sweet Spot Between Active and Passive in Global Equities

In the second half of 2026, Swedish stock-picking boutique Protean Funds plans to launch a Global Aktiesparfond, a low-cost, actively managed global equity fund...

Allocator Interviews

In-Depth: Diversification

- Advertisement -

Voices

Request for Proposal

- Advertisement -