Safety first

One of the recent additions to our SSF European Value Fund is Autoliv, a leading manufacturer of airbags. We appreciate Autoliv’s strong execution and its partnerships with all major OEMs, which underpin its solid market share in the automotive passive safety segment. We also like the fact that it’s not a bet on the success of any single carmaker, but rather on the broader growth in global light vehicle production and the increasing safety content in cars.

The stock is currently down 40% from its peak in the summer of 2024, partly due to tariff concerns,  and stands out in our proprietary quality-value framework—not only relative to the broader market but also compared to its own historical levels. With an estimated return on equity of 29.6% this year and trading at just 10 times forward earnings, Autoliv represents the kind of overlooked mid-cap opportunity we like—especially when investor attention is focused elsewhere.

This is not a stock recommendation but an example of the type of investment we pursue at ECP. Please do your own research before making any investment decisions.