For most of this year, fund managers stuck holding shares in Corporate Travel Management have been slashing the value of their positions in the travel services provider after an accounting scandal prevented the stock from trading for more than 12 months.
Bennelong Australian Equity Partners – one of Corporate Travel’s biggest shareholders – was among the chorus of high-profile fund managers that reduced the value of its stake multiple times before finally writing down the position to zero, a result that hammered returns across its equity funds.
While many in the market had feared that Corporate Travel would be removed from the ASX permanently, the shares resumed trading last month after the scandal-plagued company finally lodged its audited full-year accounts.
The stock crashed 85 per cent to $2.32 on its first day back on the sharemarket, but Bennelong was among the few shareholders that held on to its stake instead of running for the exit like other investors.
That decision is starting to pay off, with shares in Corporate Travel rebounding about 45 per cent to $3.38 since then.
“The FY26 numbers showed a business that held up well through its UK issues,” Bennelong wrote in a note to clients, referring to the major overcharging and accounting scandal in its European business that dated back to 2019.
“In our view, a re-rating could come from the market recognising that the Australian and North American earnings have been resilient and therefore warrant a higher multiple.”