Bodenholm Capital’s Returns, AUM and Holdings

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.

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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.