Report May 2026
Performance – May 2026: During May, the Pareturn Columbus Class I2 fund rose by 1.48%, bringing its year-to-date performance to 8.4%. Over the last 12 months, the fund has delivered a return of 23.5%, significantly outperforming the Stoxx 600, which rose by 14% over the same period. Thanks to this solid performance, the fund ranks in the top quartile of its category over 1-, 3- and 5-year periods, according to Morningstar data. Since its launch in June 2008, the fund has recorded a cumulative return of 243%, consistently outperforming the main European stock market indices.
Market environment: The rise in equity markets that had begun the previous month continued throughout May. Technology continued to lead the rally, alongside basic materials and the travel and tourism sector, whilst the energy sector and interest rate-sensitive stocks underperformed.
The fall in oil prices, following the announcement of the ceasefire – down nearly 20% from its highs to around USD 91 – defined the month. The market is now also fully pricing in an interest rate hike by the ECB in June and is anticipating further rises. Finally, quarterly corporate earnings have been better than expected, particularly in the energy sector, AI-related stocks and interest rate-sensitive sectors. Conversely, companies exposed to Chinese competition (automotive), consumer discretionary or energy costs were cautious in their guidance.
Performance of key holdings: In May, Bodycote’s rise (+20%) stood out. The British company, which specialises in the heat treatment of metals for use at high temperatures (in the defence, automotive and aerospace sectors), announced that it had received a conditional takeover bid from Apollo, a private equity firm. The cash offer is 27% higher than Bodycote’s market price. Apollo has until 19 June to confirm the offer. We believe the offer undervalues Bodycote at the price offered.
Also in the UK, Currys (+21.8%), a consumer electronics retailer, reported results that, once again, surprised the market. Sales were higher than expected and cash flow was strong. On the downside, Rovi Laboratories disappointed in its quarterly results presentation. Delays in contracts for the production and packaging of pharmaceutical products and price cuts across its heparin range caused the share price to fall by 24%.
The shift in economic conditions we identified in March remains intact: weaker growth coexisting with higher inflation. Risk premiums remain elevated pending the resolution of the Gulf conflict.
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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.
