Fund performance – June 2025: In June 2025, the Pareturn Columbus Class I2 fund achieved a return of +2.2%, significantly outperforming its benchmark index, the Stoxx 600, which fell by -1.3%. During the first half of the year, the fund saw an impressive 12.3% increase, while in the last 12 months it has gained 17.9%, compared to 6.6% for the Stoxx 600 so far in 2025 and 5.9% over one year. This strong performance places the fund within the top 10% of its category this year, according to Morningstar. Since its launch in June 2008, the fund has demonstrated consistent outperformance, with a +184% appreciation that has consistently exceeded the major European stock indices.

Market Analysis: US vs. Europe. In June, the US market bounced back, with the S&P 500 up 5%. This growth was primarily driven by the technology sector (Nasdaq: +6%), with notable contributions from Nvidia’s strong performance. However, this positive development is somewhat offset by the significant depreciation of the US dollar against the euro this year (-13% in 2025), which could pose challenges in refinancing the country’s growing fiscal deficit. In contrast, European markets experienced a -1.3% decline over the month, demonstrating resilience. Stable interest rates, controlled inflation, and a favorable currency environment create an ideal setting for European companies. We believe that European markets will continue to receive investment flows from abroad, benefiting from the global context.

Europe: The Global Safe Haven and Reforms initiative: The European economy continues to demonstrate stability. Germany has the potential to increase investment in the region if it implements the necessary reforms. Furthermore, the weak dollar and the slowdown in China are encouraging investors to reallocate capital to Europe, a trend which we believe is still in its early stages.

Performance of Relevant Positions: in June Siemens Energy is up +15%, hotel company Dalata +12% (driven by an offer), chemical company Elementis +12%, which announced the sale of its talc division, and Grifols: +10% (remarkable recovery after heavy punishment). The worst contributors of the month were Redcare: -18% and defense company Renk AG: -14%, after strong gains in previous months.

Portfolio changes: During June, we made some selective divestments, including Computacenter, a well-managed IT services company but one that faces risks of spending cuts by its corporate clients.

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Since May 2023, Spanish investors can access the Columbus strategy through the Spanish fund GVC Columbus European Equities FI. The Fund can be purchased through the AllFunds, Inversis and Fundsettle platforms. Columbus has a Master-Feeder structure. The Pareturn GVC Gaesco Columbus European Equity Fund in Luxembourg (master) and the GVC Columbus European Equities FI (feeder). The Luxembourg vehicle offers institutional and retail share classes denominated in euros and sterling.

Performance April 2025: Despite market volatility, the Pareturn Columbus Class I2 Fund closed April with a positive return of +1.3%. This outperformed the main global indices, which fell over the month: the S&P 500 was down -0.8% and the European Stoxx 600 -1.2%. Over the last twelve months the Fund has generated a return of +7.5%, outperforming both the Stoxx 600 (+4.5%) and the S&P 500 in euro terms (+4.7%). Since its launch in June 2008, the Fund has achieved a cumulative performance of +155%, outperforming the main European stock indices.

Market Analysis: 2025 is characterized by high volatility, driven by mixed macroeconomic signals and erratic US trade policy. In April, the markets welcomed with relief the pause in tariffs announced by the Trump administration. However, structural concerns remain, such as the “twin deficits” (fiscal and trade), which are creating uncertainty and pressure on the dollar. Tariff policy has hurt consumer confidence and contributed to negative US GDP growth in the first quarter. By contrast, Europe is starting to gain traction: the euro has strengthened, equity valuations are at historically low levels and interest rates have fallen, providing additional support to Europe.

Europe: Favorable Capital Flows. In a complex and changing global environment, recent declines have created entry opportunities. Although macroeconomic data in the US may deteriorate in the coming quarters, the European market is beginning to be perceived as an attractive option with a relatively low risk profile. Meanwhile, US technology continues to perform well, but high valuations and the appreciation of the dollar have limited real gains. By contrast, European equities are benefiting from the weaker dollar and improved risk perceptions.

Profitability of Relevant Positions:  In April, the main positive contributions to performance came from: Siemens Energy (+25%), Renk AG (+19%), Auto Trader (+13%) and Mapfre (+10%), after reporting good results. On the negative side: Mobico fell -47% after announcing the sale of assets in the US for assets in the US for a much lower amount than expected. We maintain our position as the group generates free cash flow and we believe that it can sustain its balance sheet as long as it improves its operations. Fugro declined -22% after the earnings release. The fund maintains an investment level of 97%.

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Since May 2023, Spanish investors can access the Columbus strategy through the Spanish fund GVC Columbus European Equities FI. The Fund can be purchased through the AllFunds, Inversis and Fundsettle platforms. Columbus has a Master-Feeder structure. The Pareturn GVC Gaesco Columbus European Equity Fund in Luxembourg (master) and the GVC Columbus European Equities FI (feeder). The Luxembourg vehicle offers institutional and retail share classes denominated in euros and sterling.

February 2025: Despite market volatility, Europe and the Pareturn Columbus Class I2 fund have had a positive start to the year. February has been somewhat more complex, with the fund recording a 0.1% decline after a 3.1% increase in January 2025. Contrary to a weak United States, Europe has enjoyed a strong performance during this period. Over the past twelve months, the fund has achieved a return of 10.1%, slightly below its benchmark, the Stoxx 600 (12.6%). Since its inception in June 2008, the fund has accumulated an appreciation of 158%, outperforming the main European equity indices.

Market Analysis: The beginning of 2025 has generally been marked by divergent behavior between the USA, Europe, and China. Trump has a complex legacy, including a high public deficit, relatively high inflation, and an overvalued stock market. The tariff policy does not help control inflation, affects consumer confidence, and paradoxically is affecting the valuation of US technology companies. In contrast, the European market has experienced a rebound, with an 8% increase in the Stoxx 600 index in 2025. The US political situation, with its impact on markets, has boosted European and Asian indices, which have historically low valuations compared to their American counterparts. Long-term interest rates have corrected in the USA (4.2%) and rebounded in Europe, although Europe remains at acceptable rate levels.

Europe: What Could Happen?: The global situation is complex and very fluid, but we believe that the winds of reform are favorable for Europe. There is a general consensus on the need for reforms, as reflected in the Draghi report. Furthermore, the European market has suffered from years of fund outflows, despite the presence of very attractive companies. The risk of being exposed to the US technology sector is considerable, and a slight change in market perception is generating an incipient inflow of capital towards European stocks.

Profitability of Relevant Positions: In February, the positions that contributed most to the portfolio’s return were defense manufacturer Renk AG (+22%), Grifols (+28%), Unicaja (22%), and a new position for the fund, Zegona (+14%). Zegona manages the assets of the former Vodafone Spain, and has good potential for restructuring and asset sales. On the other hand, some positions recorded declines this month, such as Soitec (-32%) and Interpump (-20%). The fund is 96% invested.

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Since May 2023, Spanish investors can access the Columbus strategy through the Spanish fund GVC Columbus European Equities FI. The Fund can be purchased through the AllFunds, Inversis and Fundsettle platforms. Columbus has a Master-Feeder structure. The Pareturn GVC Gaesco Columbus European Equity Fund in Luxembourg (master) and the GVC Columbus European Equities FI (feeder). The Luxembourg vehicle offers institutional and retail share classes denominated in euros and sterling.

December 2024 and the performance of the Pareturn Columbus Class I2 Fund: In December 2024, Pareturn Columbus Class I2 Fund rose 0.7%, outperforming benchmark indices that closed with slight losses. During the second half of the year, the fund has shown a significant recovery, up 5% over the last six months and 4% for the full year 2024. Since its inception in June 2008, the fund has accumulated an appreciation of 153%, consistently outperforming the major European equity indices.

Market conditions: The year 2024 has been marked by strong polarisation. In the US, the technology sector led the market rally (Nasdaq: +29%), while the S&P 500 advanced 23%. In contrast, Europe experienced a modest increase of 5.5% (Stoxx 600). Valuation differences between US and European markets reached record highs. Donald Trump’s rise to power had a significant impact, boosting the US market, fuelling rampant speculation in cryptocurrencies and leaving European small and medium-sized companies with historically low valuations versus their US counterparts. Despite interest rate cuts by central banks, long-term rates rose slightly in both the US (from 4.0% to 4.5%) and Europe (from 2.1% to 2.4%).Europe, opportunities in global companies: Although the economic situation in Europe remains weak, we have identified attractive opportunities in companies with global exposure and favorable valuations. We remain optimistic on the outlook of certain European companies in the global context.

Performance of relevant positions: In December, the top performing positions in the portfolio were Wise (+21%), Kontron (+14%), Fraport (+13%), and EFG International (+10%). In contrast, some positions fell like Craneware (-12%) and Acciona Energía (-12%). For the year-to-date 2024, the best performers ​​were Siemens Energy (+357%), Prysmian (+54%), Unicaja (40%) and Trainline (38%).

Portfolio movements: During December, Neoen was sold, following the confirmation of the takeover bid received in previous months, and Elecnor, after the payment of an extraordinary dividend. These stocks generated gains of 61% and 48%, respectively, from the time of purchase.

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Since May 2023, Spanish investors can access the Columbus strategy through the Spanish fund GVC Columbus European Equities FI. The Fund can be purchased through the AllFunds, Inversis and Fundsettle platforms. Columbus has a Master-Feeder structure. The Pareturn GVC Gaesco Columbus European Equity Fund in Luxembourg (master) and the GVC Columbus European Equities FI (feeder). The Luxembourg vehicle offers institutional and retail share classes denominated in euros and sterling.

In October 2024, the Columbus Class I2 fund recorded a decline of 1.9%, better than our benchmark indices, such as the MSCI Midcaps Europe (-3.5%) and the Stoxx 600 (-3.4%). This month has been negative for global markets, but Columbus managed to outperform its benchmark index. Columbus is up 12.5% in the past 12 months. Since its inception in June 2008, the fund has achieved an appreciation of 144%, outperforming the main European equity indices.

Market conditions: following the US Federal Reserve’s rate cut in September, the markets remain expectant ahead of the US elections. The most relevant event this month has been the increase in long-term rates, with the US 10-year bond rising from 3.6% to 4.4% and the German bond from 2.0% to 2.4%. Globally, the main stock market indexes fell (Stoxx50: -3.5%, Nasdaq: -0.5%).

Opportunities in Sight: at Columbus, we identify interesting opportunities, despite a challenging macro environment. The interest rate cycle is acting as a support, and valuations in Europe are particularly attractive. Although volatility persists, we continue to find great value in European companies with global growth potential.

Performance of Relevant Positions: in October, positions in Trainline (+18%), Siemens Energy (+13%), Elecnor (+10%), Mapfre (+10%) and Wise (+7%) performed positively. In contrast, Elementis fell by 18% due to unsubstantiated regulatory fears, as did Befesa (-18%) and Renk (-17%).

New investments: we did not add any new investments this month, although we took advantage of recent weakness in Renk and increased our position. Renk is a German defence company with a strong order book and high margins. We took advantage of the sale of shares at a discount by its main shareholder.

Download monthly factsheet [PDF]

Since May 2023, Spanish investors can access the Columbus strategy through the Spanish fund GVC Columbus European Equities FI. The Fund can be purchased through the AllFunds, Inversis and Fundsettle platforms. Columbus has a Master-Feeder structure. The Pareturn GVC Gaesco Columbus European Equity Fund in Luxembourg (master) and the GVC Columbus European Equities FI (feeder). The Luxembourg vehicle offers institutional and retail share classes denominated in euros and sterling.