Report October 2024
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.
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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.
