[Translated from Swedish original]

GCQ, which describes itself as an activist fund, has risen to become one of Hemnet’s largest owners over the year and has previously called the stock “extremely cheap.” It’s a message that investment manager Douglas Tynan now reiterates.

“We have bought Hemnet shares in recent weeks at really attractive prices,” he writes in an email to Di.

Hemnet has almost halved on the stock exchange this year and last week the stock traded at its lowest level since spring 2023.

Douglas Tynan points out that Hemnet has a strong position in the Swedish market, but that this has not protected the stock from falling sharply during a year of weaker housing sales.

“We have seen such cyclical downturns before in all housing markets around the world, and they never last long,” he says.

Hemnet’s position as a leading housing platform is currently being challenged from several sides, as Di has previously reported . The increasingly expensive advertising prices on Hemnet have also led to growing dissatisfaction among both home sellers and brokers.

On Friday, Hemnet launched a new advertising model where customers do not have to pay for their ad until the home is sold. This contributed to the pressured share price rising.

“Even the best companies cannot afford to stand still, and we applaud the management for this offer, which is very positive for both brokers and home sellers,” writes Douglas Tynan.

He believes that Hemnet’s new offering is particularly relevant as the pre-sale market is becoming increasingly important, where items are sold even before regular viewings.
“It is initiatives like this that will ensure that Hemnet will be the heart of the Swedish housing industry for decades to come,” believes Douglas Tynan.

Earlier this year, GCQ sent a letter to Hemnet Chairman Anders Nilsson urging a series of measures , most notably larger buybacks. When asked if the fund has received any response, the investment manager replied that they are “engaged in an ongoing dialogue with the board and management on various issues related to corporate strategy and governance.”

Would you like to take a seat on the board?
“We have not made a decision at this stage, but will review it in the coming months,” answers Douglas Tynan.

Hemnet rose about 3 percent on Monday, after Friday’s rise of just over 7 percent. The share price has fallen a total of 48 percent so far this year.

Victor Hultgren, Dagens industri

End.