Activist investor Cevian Capital cut its stake in Ericsson to 7.4 per cent of share capital, to adjust its portfolio weight and explore other investment opportunities, Reuters reported.

A filing to the US Securities and Exchange Commission on 24 April showed Cevian Capital reduced its holding of Ericsson Class B shares by almost 34 million, to 246.9 million.

Christer Gardell, managing partner and co-founder of Cevian Capital, told Reuters the move was taken to adjust the weighting of its portfolio to a suitable level, with the proceeds going towards investments in other companies.

Despite the decision, Gardell noted the investment company still believed in the potential of the Sweden-based vendor.

Ericsson’s annual report showed Cevian Capital held an 8.43 per cent stake at end-2019, with holding companies Investor AB and Industrivarden having stakes of 7.2 per cent and 2.61 per cent respectively.

Cevian Capital acquired a 5.6 per cent stake in Ericsson in May 2017 for a reported sum of $1 billion. Five months later, Investor AB surpassed Cevian Capital to become Ericsson’s largest shareholder by raising its stake to 6.6 per cent.