The board of investment firm Kinnevik has appointed Helena Saxon as its new CEO, effective August 1. She joins from industry peer Investor, where she previously served as Chief Financial Officer.

The announcement was met with a positive market reaction. By 1:00 PM, Kinnevik shares were up 6.5 percent amid a broader rally on the Stockholm Stock Exchange. The stock has endured a dismal performance over the past five years, plummeting 77 percent.

'I hope the CEO brings a large and sturdy broom. Now is not the time to invest in new companies. I believe what Kinnevik needs is a proper cleanup and a narrowing of its investment focus,' major shareholder Johan Klingspor told EFN. He expressed a positive view of the appointment.

Klingspor has long advocated for Kinnevik to establish consistent cash flow.

'And with cash flow comes another of my pet peeves: I believe shareholders are genuinely interested in dividends. Capital growth is excellent, but one wants to realize some of that growth along the way, and that means dividends. You cannot do that without cash flow,' he added.

At the same time, Kinnevik holds a cash position of 7.6 billion SEK, which Johan Klingspor believes the company must manage with caution.

Kinnevik was founded in 1936 by the Stenbeck, Klingspor, and von Horn families. Today, the Klingspor family collectively controls 2.46 percent of the capital and 9.83 percent of the voting rights in Kinnevik, according to the ownership tracking service Holdings.