- Advertisement -

Related

Cevian Capital: “Constructive Activism”

- Advertisement -

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

€10 Million Mandate Up for Grabs in U.S. Equity Long/Short

A France-based investor is seeking a manager for a U.S.-focused equity long/short strategy, with an expected allocation of €10 million. According to a request...

Beyond 60/40, Part II: The Fourth Building Block

By Alexandra McGuigan, Head of APAC, Qblue Balanced: Over the past year, pension funds, sovereign investors and family offices across Asia-Pacific and Europe have...

Tidan Capital Adds Luca Moro as Senior Portfolio Strategist

Stockholm-based boutique Tidan Capital has appointed Luca Moro as Senior Portfolio Strategist, strengthening the team led by founders and portfolio managers Michael Falken and...

Axel Ekros: From Elite Rowing to Finding Opportunities in Nordic Equities

The next generation of portfolio managers often begins its journey away from the spotlight, developing investment skills as analysts before taking on portfolio responsibility....

Borea Opens Oslo Office as Expansion Continues

Bergen-based Borea Asset Management is expanding its presence in Norway with the opening of an office in Oslo and the appointment of two client...

The European SMID Opportunity Through Mind and Machine

By Fleura Shiyanova at Kepler Unigestion: European small- and mid-cap equities offer access to businesses at the centre of Europe’s investment priorities, yet many...

Allocator Interviews

Voices

Request for Proposal

- Advertisement -