European Holdcos Also Benefit From The 'Risk On' Mood
Since the last April ‘liberation tariffs’ near miss for markets, nearly all sectors have gone up. HoldCos too as it happens, and they have left the Stoxx600 behind since early July.
HoldCos show hope
This is good news as it indicates that risk taking percolates lower down the equity scale. It would be bad news, however, should the discount to NAV compress to below 15%. It is currently hovering between 25%-30%. Thus, underlying assets themselves have been reset at a higher level.
While average numbers are not always useful, it is worth mentioning that out of the 20 HoldCos under coverage, the average % of the NAV which is listed is … 77%. This is a lot, as well as a happy observation, as too many of the HoldCos have been dreaming of turning themselves into Private Equity managers. Had they managed this pivot, we would have been hard pressed to define a NAV at all.
The price factor for booming underlying assets since April 2025 can be gauged across the AlphaValue coverage. Simply put it is … 28% as measured through PEs ex Banks and Deep Cyclicals.
All is well, but it must be remembered that HoldCos rarely justify going for, as they offer little by way of a singular money management strategy whatever the good intentions of their managers. There may be only one exception in Investor AB. Ackermans has also performed well over 5 years, (a little less over 10 years).
The following table is a reminder of what one needs to know when dipping a toe into holding companies’ water. From AlphaValue standpoint, HoldCos with substance include Exor, Investor and Prosus, at pixel time.
HoldCos show hope
This is good news as it indicates that risk taking percolates lower down the equity scale. It would be bad news, however, should the discount to NAV compress to below 15%. It is currently hovering between 25%-30%. Thus, underlying assets themselves have been reset at a higher level.
While average numbers are not always useful, it is worth mentioning that out of the 20 HoldCos under coverage, the average % of the NAV which is listed is … 77%. This is a lot, as well as a happy observation, as too many of the HoldCos have been dreaming of turning themselves into Private Equity managers. Had they managed this pivot, we would have been hard pressed to define a NAV at all.
The price factor for booming underlying assets since April 2025 can be gauged across the AlphaValue coverage. Simply put it is … 28% as measured through PEs ex Banks and Deep Cyclicals.
All is well, but it must be remembered that HoldCos rarely justify going for, as they offer little by way of a singular money management strategy whatever the good intentions of their managers. There may be only one exception in Investor AB. Ackermans has also performed well over 5 years, (a little less over 10 years).
The following table is a reminder of what one needs to know when dipping a toe into holding companies’ water. From AlphaValue standpoint, HoldCos with substance include Exor, Investor and Prosus, at pixel time.
Subscribe to our blog
Medtechs are going nowhere. The post Covid darlings are no longer much in demand.
