Cevian Capital reported shedding 25% of value through August

Activist investor Cevian Capital, led by managing partner Christer Gardell, saw the value of its assets cut by 25% through August, according to analysis of a letter sent to shareholders.

Local daily Dagens Industri reports that the letter sent to shareholders in the Cevian fund stated that losses in the first three weeks of August were 25%.

On the assumption that assets under management were about SEK40bn (€4.3bn)at the time, this means investors lost some SEK10bn (€1bn) following the market volatility seen through the period.

Dagens Industri said that it was difficult to know which holdings in the fund had contributed most to the losses, because there is little transparency around the portfolio.

Among those holdings that have been made public are Swedbank, Volvo, and IT consultant Tieto. The paper notes that Swedbank and Volvo were among the worst performing stocks on the Stockholm stock exchange in August, although Tieto held up relatively well.

Another daily Affärsvärlden added that it is believed a US institutional investor has put up to SEK5bn (€0.5bn) into the fund, although no date is given identifying whether this investment was made before or after the letter to investors.

So far Gardell has not commented on either the existence of the letter, the alleged losses to the fund, or the existence of a new large investor in the fund.

Earlier this year InvestmentEurope reported that Gardell was considering closing the second fund to additional institutional investors.

The company also announced that it was appointing Paul Myners, former chairman of Gartmore and City minister in UK prime minister Gordon Brown’s government, to head up its UK operations.

Cevian Capital was founded in 2002 by Christer Gardell and Lars Förberg with the launch of Cevian Capital I, according to information on the company’s own website www.ceviancapital.com

In 2006, Cevian raised its second fund, Cevian Capital II.

The company’s identifies itself as “an active ownership investment firm creating value by (i) acquiring substantial ownership positions in undervalued public companies and (ii) realizing their long term value potential through active ownership.”

“Cevian manages a concentrated portfolio, with significant ownership positions in a limited number of publicly listed companies and is typically one of the largest shareholders in its portfolio companies.”



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