Blue Cap is a Munich-based industrial holding company, investing in medium-sized manufacturing companies with a turnover range of €10-100m.
Investment summary
Blue Cap’s solid 2018 results were epitomised by a 15% rise in NAV and a positive trading statement. Management confidence in continued operational gains across the board and long-term turnaround potential at Knauer is complemented by an increasing appetite for transformative investments. However, such optimism risks being obscured by the demands of its new major shareholder, PartnerFonds (44%), even if hitherto settled judicially in favour of Blue Cap management, and now looking to be resolved amicably in the interests of all shareholders. Despite more challenging conditions (consensus forecasts have been reduced), the 40% share price discount to NAV (€29.55 at December 2018) appears excessive.
