Investing.com -- Shares in medical devices manufacturer Smith & Nephew (LON:SN) jumped on Thursday after activist investor Cevian Capital disclosed a stake in the group.
A filing showed that Stockholm-based Cevian had built a 5% interest in Smith & Nephew, the maker of orthopaedic implants and prosthetics which has lost over half of its stock value since touching a record high in 2020.
Changes to procurement practices in China, as well as a string of executive-level changes, have dented sentiment around Smith & Nephew. Revenue of $1.39 billion in the FTSE 100-listed company's fiscal first quarter missed estimates.
Citing a statement from a partner at Cevian, Reuters reported that the investor sees the potential to create "long-term value" in Smith & Nephew by improving its operating performance.
Cevian has also taken stakes in a range of businesses, including Swiss bank UBS, Irish building materials firm CRH (NYSE:CRH), and education publisher Pearson.