Cevian Capital Discloses G4S Stake ~ market folly

Thursday, August 22, 2013

Cevian Capital Discloses G4S Stake

Anglo Swedish activist hedge fund, Cevian Capital, has disclosed a new stake in London listed G4S (LON:GFS).  According to the filing on August 12th, Cevian, own 5.11% of G4S's voting rights. 

G4S, one of the world's largest security firms, has been struggling since it failed to fulfill its staffing obligations at the London Olympics in 2012.  G4S lost its CEO in the storm that followed and is now facing an additional investigation into alleged over-billing of the government for the tagging of offenders.

Cevian joins some other notable names on the long side of G4S including: Invesco's Neil Woodford, Bill and Melinda Gates' Foundation / Cascade and Tweedy Brown.

Many Hedge Funds Short G4S As Well

However, G4S seems to have attracted a lot of hedge funds on the short side as well.  AKO Capital have a 0.54% short, Adelphi Capital -0.71%, BlackRock -0.59%, Egerton Capital -0.7%, Lansdowne partners -0.66%, and Odey Asset Management -0.66%.

About Cevian Capital

Cevian was founded in 2002 by Christer Gardell and Lars Forberg.  Cevian has 6 billion euros under management and specializes in running concentrated, activist positions.

About G4S

Per Google Finance - “G4S Plc, along with its subsidiaries, is engaged in provision of secure  solutions, including manned security services, care and justice services and security systems, and   cash solutions, including the management and transportation of cash and valuables, as well as   undertaking of other outsourced business processes in sectors where security and safety risks are   considered a threat. The Company operates in two segments: secure solutions and cash solutions.   Secure solutions are the integrated security solutions for commercial organizations in areas such as   risk consulting, manned security and security systems and a range of services including protection   of critical national infrastructure, care and justice services, integrated facilities services and border   protection for governments. Cash solutions are the outsourcing of cash cycle management for   central banks, financial institutions and retailers.”

blog comments powered by Disqus