The New Capital Swiss Select Equity Fund

The hidden gem
Airopack

The company

 

You may not have heard of Airopack, but this company has the potential to revolutionise an industry. Airopack has created a spray dispenser technology that uses pressurised air rather than chemicals to dispense its contents.

 

It’s made from fully recyclable, plant-based packaging that will appeal to environmentalists, and provide brownie points to companies that take it on.

 

Another bonus is that the container pressure stays constant, meaning you can dispense every last drop of shaving gel or deodorant from the bottle.

 

The potential

 

More than 15 billion metal aerosol dispensers using chemical propellants are produced every year, a number growing marginally faster than global GDP. There is a huge market for this very desirable product.

 

Although securing its first big customer was not straightforward – consumer product companies are traditionally conservative and have written off their filing capacity – Airopack scored a big win in Q4 2015 with Gillette, which took it on for top shaving gel brand Fusion Proglide.

 

This company is playing in the big league now.

 

Performance

 

This is an early-stage product that still has negative cash flow, limited liquidity, and a dependence on one big customer. This might put risk-averse investors off. But there is no sell-side research to hide behind and the product could make an enormous difference to its target market.

  • Fund details

    Fund manager: Urs Beck

    Inception date: 13 March 2014

    AUM: CHF 122m

    Base currency: CHF

    Price reporting Financial Times, Bloomberg, Micropal, Lipper

    Benchmark/reference index:
    Swiss Performance Index

    Investment manager: EFG Asset Management (UK) Limited

    Subscription/redemption:
    Daily 16.00 (Irish time)

    Accounting period: 30 June

  • Share class details

    Inception date: 13 March 2014

    NAV: CHF 150.35

    Management Fee (pa): 0.70%

    Minimum Investment

    • Initial CHF 5,000,000/Subsequent
    CHF 1,000,000

    Dividend (for income classes):

    Identifiers

    • ISIN: IE00BJFL7248

    • Bloomberg Code: NCSSEFI ID

Airopack stock performance

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Airopack management

 

Following the Gillette deal, investment company Apollo Global bought a decent stock holding with Airopack. The management team has good and bad qualities.

 

On the upside, CEO Quint Kelders is the main shareholder, Airopack is his baby, and he knows it inside out. On the downside, communication with the public is poor and some elements of corporate governance need to be upgraded.

Data as of 30 April 2017