Report January 2025
January 2025: Pareturn Columbus Class I2 fund rose 3.1% in January. It has been a good month for the European market which has outperformed global benchmarks, including the US. Over the last 3 months, the fund has shown a significant recovery, with a return of 8.0%, above our benchmarks (Stoxx 600: 6.8%). Since its inception in June 2008, the fund has accumulated an appreciation of 161%, outperforming the main European equity indices.
Market situation: The beginning of the year 2025 has been turbulent in political and economic terms but has been favorable for the world’s stock markets. In the United States, the technology sector suffered a correction on the back of the irruption of the Chinese Deep Seek AI model, a sign in our opinion of overvaluation in the US Big 7. In contrast, Europe experienced a remarkable rise of 5.9% (Stoxx 600). Donald Trump has generated a significant impact, paradoxically boosting European indices that have historically low valuations versus their US counterparts. Long rates were stable (USA 4.5%).
Europe, why now?: the economic situation in Europe is complex, however, European stock markets have turned upwards, including Germany (DAX: +8%). Europe is highly penalized and there is a consensus on the need for reforms, as the Draghi report clearly shows. But on top of that, it is a market that has been suffering from fund outflows for years, despite the fact that there are very attractive companies with global exposure or local growth. The risk of being exposed to U.S. technology is very high, and a slight change in perception can lead to significant inflows for European stocks.
Performance of relevant positions: In January, the best-performing positions in the portfolio were Renk AG (+34%), Siemens Energy (+15%) and Fresenius (+11%). However, some positions recorded declines, such as Trainline (-17%) and Fugro (-8%), both with good fundamentals but with regulatory changes.
Portfolio movements: During the month of January we have not made any divestments, the fund is 97% invested. We have started a position in a stock for which we will give more details in future reports.
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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.
