Business Breakdowns Exor: Fiat Crisis to Ferrari Glory - [Business Breakdowns, EP.229]
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Oct 1, 2025 Krishna Mohanraj, a portfolio manager at Diamond Hill, dives into the fascinating evolution of Exor, the Agnelli family's investment powerhouse. He details how John Elkann reshaped Exor after inheriting it at just 21 years old and discusses its diverse holdings including Ferrari and Stellantis. Krishna highlights Ferrari's dual identity as both a car manufacturer and a luxury brand. He also explores Exor's strategic focus on healthcare, luxury, and technology while reflecting on lessons in decisiveness and active portfolio management.
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From Fiat Chaos To A Centralized Holding
- Exor is a Dutch holding company with deep Italian roots that consolidated the Agnelli family's complex ownership into one structure.
- John Elkann simplified governance, relocated headquarters to the Netherlands, and centralized family assets under Exor.
Portfolio Concentrated In Four Public Names
- About 70% of Exor's gross asset value is in four listed companies: Ferrari, Stellantis, CNH, and Philips.
- The remaining value sits in smaller listed stakes and private holdings like Louboutin, The Economist, and asset management ventures.
Elkann Learned From A Brutal Turnaround
- John Elkann inherited a struggling Fiat and helped recruit Sergio Marchionne to lead a painful but successful turnaround.
- Marchionne negotiated critical deals, forced cost cuts, and rebuilt Fiat into entities like Ferrari and Stellantis.