Stockholm (HedgeNordic) – Last week, two Swedish hedge fund boutiques, Adrigo Asset Management and Origo Fonder, agreed to acquire 750,000 shares in Maven Wireless, a Swedish producer of wireless telecommunication equipment. This transaction involved purchasing approximately 15 percent of the CEO’s stake in Maven Wireless through a direct deal. Staffan Östlin of Adrigo, who had already started buying shares in the relatively unknown stock back in November, notes that the CEO’s decision to sell a portion of his stake for tax reasons “was a great opportunity to accumulate more shares.”
Maven Wireless Sweden is a technology company based in Sweden, focusing on the development and sale of systems for indoor and tunnel coverage for public mobile systems and critical communications. Östlin, who runs a stock-picking hedge fund seeking opportunities in the Nordic small- and mid-cap segment, first met with Maven’s management back in August and started buying shares in November.
“Maven Wireless is an unknown stock among most small-cap investors.”
“Maven Wireless is an unknown stock among most small-cap investors,” says Östlin. “Still, it is a company early in its growth phase with very good prospects to become a large global player and it is probably just a matter of time before more investors discover the stock,” he emphasizes. “The need to improve wireless coverage indoors and in tunnels is vast and growing and the company and its founders have a very good track record.”
“Still, it is a company early in its growth phase with very good prospects to become a large global player and it is probably just a matter of time before more investors discover the stock.”
Maven Wireless has a “highly competitive product portfolio,” according to Östlin, with the company managing to secure contracts with several large international clients within a short span. The company’s sales grew by 126 percent year-over-year in 2022, and by 102 percent in the latest quarter relative to the same quarter of last year, points out Östlin. “The company is profitable, with a 21 percent EBIT margin in the third quarter, and there should be potential for margin improvements in the coming years.”
“Moreover, management and founders really have skin in the game. These are characteristics we like when we invest,” emphasizes Östlin. Despite selling 15 percent of his stake to Adrigo and Origo, CEO Fredrik Ekström retains ownership of 4 million shares in the company, equivalent to 7.7 percent of the group. “I am happy that both Adrigo Asset Management and Origo Fonder have chosen to invest in Maven Wireless. This transaction has become possible because I chose to sell a smaller part of my shareholding in Maven Wireless Sweden AB,” says Fredrik Ekström. In a press release, Ekström clarifies that the sale was made for personal financial reasons related to covering tax costs and affirms his strong belief in Maven Wireless Sweden’s potential for continued growth in the global market for indoor coverage.