![]() With the revised rules, banks and brokerages had to unbundle the fees they charged for research and trading, which led to a decline in focus on smaller and less traded stocks.Ĭervantes plans to channel its investment cash into under-analyzed companies with a market capitalization between 500 million kronor ($59 million) and 5 billion kronor. “The goal is to eventually build a large company in asset management and become a significant player in this segment,” Lorentzon told Bloomberg.Įuropean rules introduced in 2018, known as MiFID II, were designed to crack down on research conflicts by forcing equity analysts to specify a charge for their work (before the change, costs were incorporated into trading commissions). The asset manager plans to look for companies that don’t get much attention from research units at the major banks. Martin Lorentzon, the Swedish serial entrepreneur who still retains an 11.1% holding in the music streamer, has bought a roughly 90% stake in Stockholm-based Cervantes Capital AB. (Bloomberg) - The co-founder of Spotify is placing some of his estimated $6.1 billion fortune into a new investment firm that plans to unearth hidden gems overlooked by equity analysts.
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