The Transformation of Cevian Capital's Holdings: Comparing Q3 and Q4 2022

Cevian Capital, one of the largest European activist hedge funds, has recently undergone significant changes in its holdings. The fund's Q3 2022 and Q4 2022 13F filings reveal a transformational shift in its portfolio composition, spurred by a combination of strategic moves and market dynamics.

In the Q3-Q4 comparison, the fund's total portfolio value increased from $12.5 billion to $14.9 billion, driven by a 14.9% increase in the value of its holdings. This was partially due to the addition of new positions and an increase in existing ones. However, the most notable feature of the fund's changing holdings was the significant reduction of one of its top holdings, Autoliv Inc.

In Q3, Cevian Capital held 6,298,508 shares of Autoliv, a Swedish-American company that designs and manufactures automotive safety systems. This position made up 14.2% of the fund's total portfolio, with a market value of $419.7 million. However, in Q4, the fund's holdings of Autoliv remained unchanged at 6,298,508 shares, but the position's value increased to $482.3 million, making up 10.1% of the fund's total portfolio value.

While the reduction in the percentage of Autoliv's share from 14.2% to 10.1% is significant, the position still constitutes a major part of Cevian Capital's portfolio. The fund also added several new positions in Q4, including purchases of stocks in the energy, technology, and pharmaceutical industries. Some of these new positions include Anadarko Petroleum, Salesforce.com, and Regeneron Pharmaceuticals.

Cevian Capital's changing holdings reflect both strategic positioning and market trends. Autoliv's position reduction seems to have been driven by natural market fluctuations, but it is worth noting that the company's share price appreciated by 14.9% during the Q3-Q4 period. Additionally, the fund's new positions were likely strategic moves aimed at diversifying its portfolio and capitalizing on market opportunities.

In conclusion, Cevian Capital's Q3-Q4 13F holdings comparison portrays significant changes in the fund's portfolio composition. The reduction in the percentage of Autoliv's shares, along with the addition of new positions, reflects a shift in the fund's strategic positioning and market awareness. It will be interesting to see how these holdings evolve in the coming quarters and how Cevian Capital adapts to potential market changes.