European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

With this report, I begin a monthly series on some of the main European holding companies that I deem interesting to long/short clients. The reports will be published in the last week of every month.
I will update my models to facilitate both the numeric discount and an updated chart, calculated with the latest account statements available from the different holdcos.
Links will be provided to the reports that contain the hedge ratios of the recommended positions.
The most compelling situations in this report, in my view, are:
<ul>
<li>Alba (ALB SM)</li>
<li>GBL</li>
<li>Investor AB</li>
<li>Kinnevik</li>
<li>Unilever</li>
</ul>
Please read on for charts and comments.

With this report, I begin a monthly series on some of the main European holding companies that I deem interesting to long/short clients. The reports will be published in the last week of every month.
I will update my models to facilitate both the numeric discount and an updated chart, calculated with the latest account statements available from the different holdcos.
Links will be provided to the reports that contain the hedge ratios of the recommended positions.
The most compelling situations in this report, in my view, are:

Alba (ALB SM)
GBL
Investor AB
Kinnevik
Unilever

Please read on for charts and comments.

Selected European Holdcos and a DLC: May Report

<a href="https://www.smartkarma.com/entities/industrivarden-ab" target="_blank" data-smartkarma-citation="entities:22395:1" rel="noopener">Industrivarden AB (INDUA SS)</a> is an investment conglomerate that uses value as criteria for investment allocation.
Listed assets represent 99% of Industrivärden´s portfolio.
<ul>
<li>Over the last years, Industrivärden has outperformed the Stockholm Stock Exchange, despite the low turnover of the investment portfolio.</li>
<li>However Industrivärden does not actively trade its portfolio.</li>
</ul>
Industrivärden has grown its NAV over the last five years. Industrivärden has been progressively reducing its debt and increasing its rating. Industrivärden has also beaten the main index of the Stockholm's market since 31 March 2015.
Industrivärden shares (both A and C) are trading at a 13.7% discount to NAV, vs. an 11.5% average for the last five years, and 10.8% for the last 365 days. The discount recently widened as a result of the corona virus crisis, to a recent high of 14.5% on 5 May. It has traded as low as 3.4% on 7 April.
If and when markets stabilise, I expect the current discount to narrow, and therefore recommend a trade Long Industrivärden C/Short main listed assets, with a 10% target.
Please read further for details such as company organisation and strategy, taxation on Swedish holdings and hedge calculations.

Industrivarden AB (INDUA SS) is an investment conglomerate that uses value as criteria for investment allocation.
Listed assets represent 99% of Industrivärden´s portfolio.

Over the last years, Industrivärden has outperformed the Stockholm Stock Exchange, despite the low turnover of the investment portfolio.
However Industrivärden does not actively trade its portfolio.

Industrivärden has grown its NAV over the last five years. Industrivärden has been progressively reducing its debt and increasing its rating. Industrivärden has also beaten the main index of the Stockholm's market since 31 March 2015.
Industrivärden shares (both A and C) are trading at a 13.7% discount to NAV, vs. an 11.5% average for the last five years, and 10.8% for the last 365 days. The discount recently widened as a result of the corona virus crisis, to a recent high of 14.5% on 5 May. It has traded as low as 3.4% on 7 April.
If and when markets stabilise, I expect the current discount to narrow, and therefore recommend a trade Long Industrivärden C/Short main listed assets, with a 10% target.
Please read further for details such as company organisation and strategy, taxation on Swedish holdings and hedge calculations.

Sweden

Industrivarden AB is an investment company.  The Company's holdings consists of a portfolio of listed Nordic industrial companies.

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Industrivarden AB (INDUA SS)

Selected European Holdcos and a DLC: May Report

With this report, I begin a monthly series on some of the main European holding companies that I deem interesting to long/short clients. The...

Jesus Rodriguez Aguilar

Industrivärden's Range Discount

Industrivarden AB (INDUA SS) is an investment conglomerate that uses value as criteria for investment allocation. Listed assets represent 99% of...

Jesus Rodriguez Aguilar

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