Bluebell Capital Partners, an activist fund manager, is calling for Swiss luxury goods group Richemont to refocus its attention on the jewellery and watch sectors. Bluebell believes that this shift in strategy could potentially double Richemont’s share price in the medium term. In an interview with Reuters, Bluebell partner Marco Taricco emphasized that Richemont should concentrate on its strengths in the hard luxury segment, specifically jewellery and watches. Taricco further suggested that the company should consider renaming itself the “Cartier group” in order to leverage the power of its iconic Cartier brand.
Bluebell, known for managing around 250 million euros in assets, gained recognition last year for its successful campaign at French group Danone, which resulted in a management reshuffle. This time, the company is undertaking an activist campaign in France, targeting construction materials giant Saint Gobain. Although Bluebell is not currently working with activist investors Third Point and Artisan on its Richemont campaign, Taricco believes that their views align closely.
Having been invested in Richemont for 1-1/2 years, Bluebell currently holds a stake worth 105 million Swiss francs ($108 million). Taricco criticizes Richemont’s decision to acquire the online retail business YOOX Net-a-Porter (YNAP), which has been generating losses.
Richemont, which operates with a dual-share capital structure where unlisted B shares have half the voting rights, has expressed willingness to review Bluebell’s request to amend statutes at the upcoming annual meeting on September 7th. Bluebell is seeking a board seat for Francesco Trapani, the former head of Italian luxury brand Bulgari and a co-founder of Bluebell. Taricco believes Trapani is an exceptional candidate for this role, stating, “You couldn’t find a better candidate if you were looking around the planet.”
Useful links:
1. Richemont Official Website
2. Cartier Official Website
