Partners Group Falls 31% YTD as Gantner Defends Against Short-Seller

Partners Group’s stock fell to CHF 710.80 on June 07, down 31% year-to-date after short-seller Grizzly Research alleged the firm’s evergreen funds are overvalued by up to 40%. Co-founder Alfred Gantner told media the market overreacted and disclosed personal share purchases. Management collectively bought over CHF 20 million in stock to signal confidence as two funds hit redemption caps.

The Short-Seller Attack and Market Fallout

Grizzly Research released a damaging report on April 29 claiming Partners Group’s evergreen funds face significant overvaluation. The firm denied the allegations as frivolous and defamatory, vowing legal action. The stock crashed as much as 16% on June 5 when the company capped redemptions at two open-ended funds after investor outflows exceeded quarterly limits.

Management Steps Up With Share Purchases

Partners Group management bought more than CHF 20 million of company stock in recent days, including roughly CHF 8.2 million on Friday alone. Co-founder Fredy Gantner saw nearly CHF 1 billion evaporate from his paper fortune last week but told SonntagsZeitung the selloff was a massive overreaction. Regulatory filings confirm management collectively stepped up purchases on June 5.

Redemption Caps and Fund Pressure

Two Partners Group Evergreen funds exceeded quarterly liquidity limits in the second quarter. The Global Value SICAV recorded redemption requests equal to 9.8% of net asset value against a 5% quarterly limit. A Delaware-based vehicle also exceeded its cap with repurchase requests topping 6% of NAV. The affected evergreen vehicle oversees roughly USD 8.6 billion in assets.

What the Numbers Say for Investors

Meyka rates PGHN.SW a B+ with a 12-month price target of CHF 939.12, implying 32% upside from current levels. The stock trades at a PE ratio of 14.68 and yields 6.47% in dividends. Technical indicators show the RSI at 22.85 (oversold) and MACD at -38.13, suggesting the selloff may have overshot. With management buying and the stock trading 39% below its 52-week high of CHF 1,158, analysts are weighing whether the decline reflects real problems or panic selling.

Final Thoughts

Partners Group faces real near-term pressure from redemption caps and fund outflows, but management’s CHF 20M share purchase and Meyka’s B+ rating suggest the market may have overshot. Investors should wait for the June 5 redemption cap impact to stabilize before committing new capital.

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