Report December 2024
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.
