Report February 2025
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.
