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Bodenholm Capital’s Returns, AUM and Holdings

Jelena Martinovic

Per Johansson's Bodenholm Capital, is a Stockholm, Sweden-based, Brummer and Partners-backed long/short equity hedge fund. It's launched back in 2015, and since then it had a strong performance. Last year, it won the Investors Choice Awards for the “Best Global Equity Fund $500m to $1bn.” Besides investment strategies, the company provides insurance and advisory services as well.

Mr. Per Johansson, Bodenholm Capital's founder, and CIO holds an MSc in Economics from the Lund University. At the very beginning of his career, Mr. Johansson served as an intern in Nordea Bank and Deutsche Bank. After graduating in 2004, he joined Fidelity International. While there, he served as an equity analyst for two and a half years, a research analyst from 2007 to 20011, only to become its Portfolio Manager in January 2010. Five years later, he founded his own firm.

Per Johansson Bodenholm Capital

As a long-term oriented investment fund, Bodenholm Capital is seeking companies with a "multi-year investment horizon." By having a concentrated portfolio of no more than 20 holdings, the fund is able to duly and adequately examine and understand businesses it wishes to invest as well as its drivers. In a process of assessment of investment opportunities, the fund relies on the “Bodenholm 4Qs”. Meaning, by evaluating the quality of Business model, quality of Management, quality of Growth, and quality of Balance sheet, the fund decides is a (particular) stock worth investing in.

In 2017 Bodenholm Capital generated a return of 12.3%, that way being one of the best performing Swedish hedge funds. The same can be said for its Bodenholm Two (USD) fund since it has been generating positive returns from its launching. In 2015, which was the year of its inception, it gained 0.72%, while in 2016  it delivered a return of 1.18%. The fund's performance was strong in 2017 as well, since it returned  13.94%, while in 2018, it generated a return of 9.96% from January until October 29th. Its total return amounted to 27.69%, and compound annual return was 8.74%, while its worst drawdown was 2.71.

Insider Monkey’s flagship strategy identifies the best performing 100 hedge funds at the end of each quarter and invests in their consensus stock picks. This way it is always invested in the best ideas of the best performing hedge funds and is able to generate much higher returns than the market. Since its inception in May 2014, our flagship strategy generated a cumulative return of 89%, beating the S&P 500 ETF (SPY) by 29 percentage points (see the details here). Our short strategy outperformed the market by 45 percentage points since its inception less than 2 years ago.

After adding only two new positions, and dumping 5 companies, Bodenholm Capital’s 13F portfolio was valued at around $208.53 million at the end of the fourth quarter of 2018 which indicates a 67.37% decrease over its value in the previous quarter. The portfolio is quite diverse and its mainly consisted of consumer goods stocks, alongside technology and conglomerates stocks among others. And while these are not exactly the most popular stocks among hedge funds, some of them are top picks of a number of hedge fund managers.

So, let's take a closer look at the changes Bodenholm Capital made to its 13F portfolio during the fourth quarter on the next page.

The fund initiated a holding in Procter & Gamble Co (NYSE:PG) a Cincinnati, Ohio-headquartered multi-national consumer goods corporation by buying 379,000 shares for $34.55 million. This purchase is not a big surprise, knowing that Kambi, a provider of sports betting solutions once was a part of the fund's portfolio. When it comes to its stock price, over the past year, some minor fluctuations have been recorded. Nevertheless, the price raised by 8.88, trading at $99.33, at price-to-earnings (PE) ratio of 24.15 (on February 21st). In addition, it has a market cap of $248.48 billion.

The other new addition to the Bodenholm Capital's 13F portfolio during the fourth quarter of 2018 was a position in Colgate Palmolive Co (NYSE:CL), a company serving people all over the world with consumer products with an emphasis on the production, distribution and provision of household, health care and personal care products. As of December 31th, 2018, this holding occupies 13.2% of the fund's portfolio after it acquired 462,000 of the company's shares valued $27.54 million. Over the course of 2018, the Colgate-Palmolive’s stock price has decreased by nearly 20% and is now trading at $66.67 at a P/E ratio of 24.26.

The fund decided to boost its stake in shares of Oracle Corp (NYSE:ORCL), by 11% to 895,300 shares worth $40.12, that way making it the largest holding that occupies 19.24% of its portfolio. A Redwood Shores, California-headquartered multinational computer technology corporation was the only holding which the fund decided to increase during the last quarter of 2018. And while over the past 6 months the stocks' price increased by 6.81%, trading at $52.25 on February 21st, it's left to be seen what are the consequences of Berkshire Hathaway Inc (BRKA) dissolving its stake in the company last Thursday.

Meanwhile, when it comes to the companies in which the fund started to lose faith during Q4 2018, there is a position in Black Knight Inc. (NYSE:BKI), in which it trimmed its stake by 27% to 874,138 shares valued $39.19 million. Furthermore, in Danaher Corp (NYSE:DHR) and Perspecta Inc. (NYSE:PRSP) the fund lowered its position in shares by 6% in both companies. As of December 31st, Bodenholm Capital holds 353,244 shares of Danaher Corp (NYSE:DHR) worth $35.97 million and 1,907,128 shares of Perspecta Inc. (NYSE:PRSP) bought for $31.14 million.

Bodenholm Capital decided to dump positions in five companies during the fourth quarter of 2018, as we already mentioned. The two largest positions the fund decided to say goodbye to were in Kohl's Corp. (NYSE:KSS) and Lamb Weston Holdings Inc (NYSE:LW) whose 124,000 and 283,300 shares the fund completely sold.

Disclosure: None

This article was originally published at Insider Monkey.