Activist investor Accendo Capital maintains a concentrated portfolio of six holdings, making its overall performance highly sensitive to developments within individual investments. The fund delivered a 22.6 percent return in July, driven primarily by strong share price gains in two holdings – SSH Communications Security and Modelon – following strategic transactions that have been in the works for some time.
Early in the month, Finnish cybersecurity firm SSH announced a strategic partnership with Leonardo S.p.A., the Italian aerospace and defence group. Leonardo committed to investing €20 million in SSH through a directed share issue at €1.50 per share, representing a 49.6 percent premium. Shortly after, Swedish simulation software company Modelon disclosed a SEK 20 million capital raise from Briarwood Chase Management, a US-based private equity firm, at SEK 20 per share – an 80 percent premium to recent trading levels.
“Both transactions were met with a positive market response…This interest signals growing investor recognition of the value in high-quality Nordic IP and its long-term strategic potential.”
“Both transactions were met with a positive market response, as reflected in SSH’s share price rising by 164 percent in July, and Modelon gaining 37 percent,” writes the Accendo team. “This interest signals growing investor recognition of the value in high-quality Nordic IP and its long-term strategic potential.” The strong performance of these holdings contributed to Accendo Capital’s 22.6 percent monthly gain, pushing its year-to-date return into positive territory at 8.2 percent. “The developments reinforce the value we see in our portfolio companies and the importance of patient capital in unlocking it,” adds the team.
This recent performance rebound has helped Accendo move its assets under management back above the €100 million mark, reaching €117 million as of the end of July. After facing challenges primarily due to share price weakness in Hexatronic, the fund’s focused strategy on Nordic small-cap companies and active ownership remains central to its efforts to create shareholder value across its holdings.
