Tag Archive for: Columbus European Mid-Cap Equity

Report April 2025

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Performance April 2025: Despite market volatility, the Pareturn Columbus Class I2 Fund closed April with a positive return of +1.3%. This outperformed the main global indices, which fell over the month: the S&P 500 was down -0.8% and the European Stoxx 600 -1.2%. Over the last twelve months the Fund has generated a return of +7.5%, outperforming both the Stoxx 600 (+4.5%) and the S&P 500 in euro terms (+4.7%). Since its launch in June 2008, the Fund has achieved a cumulative performance of +155%, outperforming the main European stock indices.

Market Analysis: 2025 is characterized by high volatility, driven by mixed macroeconomic signals and erratic US trade policy. In April, the markets welcomed with relief the pause in tariffs announced by the Trump administration. However, structural concerns remain, such as the “twin deficits” (fiscal and trade), which are creating uncertainty and pressure on the dollar. Tariff policy has hurt consumer confidence and contributed to negative US GDP growth in the first quarter. By contrast, Europe is starting to gain traction: the euro has strengthened, equity valuations are at historically low levels and interest rates have fallen, providing additional support to Europe.

Europe: Favorable Capital Flows. In a complex and changing global environment, recent declines have created entry opportunities. Although macroeconomic data in the US may deteriorate in the coming quarters, the European market is beginning to be perceived as an attractive option with a relatively low risk profile. Meanwhile, US technology continues to perform well, but high valuations and the appreciation of the dollar have limited real gains. By contrast, European equities are benefiting from the weaker dollar and improved risk perceptions.

Profitability of Relevant Positions:  In April, the main positive contributions to performance came from: Siemens Energy (+25%), Renk AG (+19%), Auto Trader (+13%) and Mapfre (+10%), after reporting good results. On the negative side: Mobico fell -47% after announcing the sale of assets in the US for assets in the US for a much lower amount than expected. We maintain our position as the group generates free cash flow and we believe that it can sustain its balance sheet as long as it improves its operations. Fugro declined -22% after the earnings release. The fund maintains an investment level of 97%.

 

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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.

Report March 2025

Performance and Evolution – March 2025: During March, financial markets were characterised by high volatility, although Europe’s relative performance was more favourable compared to other regions. The Pareturn Columbus Class I2 fund recorded a -2.6% decline over the month in a complex environment. In comparative terms, the fund outperformed the main benchmark indices such as the Stoxx 600 (Europe) which was down -4.2%. European markets performed relatively better than the US markets, which declined more sharply (S&P -5.7%). Over the last twelve months, the fund has achieved a return of 4%, in line with its benchmark index (Stoxx 600). Since its launch in June 2008, it has accumulated a 151% gain, far outperforming the main European equity indices.

Market Analysis: The year 2025 is being characterized by high global uncertainty, with marked differences in the performance of the US, European and Chinese markets. In the US, the Trump administration is generating mistrust in the markets, due to the lack of clear measures to reduce the high public and trade deficit. Moreover, the US market is perceived as overvalued. Tariff policies, far from controlling inflation, are affecting consumer confidence and putting negative pressure on the valuation of large technology companies. In contrast, Europe has shown a remarkable recovery, with the Stoxx 600 up 6% in the year to March. The weaker dollar has supported capital flows into Europe. While US long-term interest rates have corrected (to 4.3%), bond market sentiment remains subdued. In Europe, on the other hand, we expect a reduction in short-term rates, although long-term rates could remain stable.

Europe: An Opportunity?: Despite the challenging global environment, Europe presents attractive opportunities. We expect structural reforms, along the lines of the Draghi report. In addition, the European market is undervalued after years of steady capital outflows despite high quality companies. The increasing risk of exposure to US techs has led to a change in investor perceptions, leading to an incipient rotation of capital into European stocks.

Performance of Relevant Positions: In March, the top perfomers were the defense company Renk (+48%), the telecommunications company Zegona (+17%) that we incorporated at the beginning of the year, Computacenter (+14%), and Befesa (13%). On the other hand, falls were recorded in Grifols (-23%) and YouGov (-22%). The fund is 96% invested.

 

Download monthly factsheet [PDF]

 

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.

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.

 

Download monthly factsheet [PDF]

 

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.

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.

 

Download monthly factsheet [PDF]

 

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.

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.

 

Download monthly factsheet [PDF]

 

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.

Report November 2024

In November 2024, the Pareturn Columbus Class I2 fund rose by 4%. Despite the difficult environment for European stock markets, Columbus performed much better than our benchmark indices. The Stoxx 600 rose slightly (1%) while the major European indices fell (Stoxx 50: -1%). Over the last 12 months the fund has gained 8%. Since its inception in June 2008, the fund has achieved an appreciation of 151%, outperforming the major European equity indices.

Market Situation: Trump’s arrival in power has been a shock with mixed effects: the US stock market has risen (Nasdaq: 6%, S&P: 6%), speculation on cryptocurrencies is rampant, while European (Stoxx 50: -0.5%) and Asian stock markets have fallen due to the expectation of higher tariffs. On the other hand, long-term rates remain relatively high with the US 10-year bond rising to 4.2%, while in Europe the expectation of rate cuts continues due to economic weakness and good inflation data.

Europe has good global companies: the political environment in Europe has deteriorated, but that does not detract from the fact that there are very good global companies that are doing well. We are identifying good opportunities in companies that are very exposed to the US and have very interesting valuations.

Performance of Relevant Positions: in November, the positions that have risen the most are Siemens Energy (+36%), Mobico (+25%), Wise (+25%), and Craneware (+22%). In contrast, we suffered falls in Grifols which fell 16% and remains very volatile, as did Fugro (-18%).

New Investments: In the last few days, we have met with a number of companies. We have recently completed building a position in Craneware, a hospital software company that is present in 40% of American hospitals where it has 100% of its revenues and has a very interesting valuation.

 

Download monthly factsheet [PDF]

 

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.

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.

 

Download monthly factsheet [PDF]

 

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.

Report September 2024

In September 2024, Columbus Class I2 fund recorded a slight decline of 0.2%. This month has been challenging for global markets, and Columbus has maintained a performance in line with its benchmark index, the Stoxx 600, which retreated 0.4%. Since its inception in June 2008, the fund has achieved a return of 146%, outperforming the major European equity indices.

Market conditions: September was marked by key events: the US Federal Reserve’s rate cut and the strong rebound in the Chinese market, which responded positively to public stimulus after a previous decline. In addition, good inflation data and the reduction of long-term rates to annual lows helped to stabilize the markets, although the deterioration of the situation in the Middle East generated uncertainty. Globally, the main stock market indexes showed moderate gains (Stoxx50: +1%, S&P 500: +2%, Nasdaq: +3%).

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 September, the positive performance of Siemens Energy (+26.9%), Mobico (+7.8%), Interpump (+5.4%) and Trainline (+9.8%) stood out. In contrast, YouGov experienced a drop of 10.9%, affected by a competitor’s profit warning.

New Investments: We have added two new strategic positions in Cellnex and Acciona Energía. Both companies have solid assets, improved cash generation and attractive valuations that ensure a positive evolution in the coming years.

Download monthly factsheet [PDF]

 

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.

Report August 2024

Pareturn GVC Gaesco Columbus European Equity Fund class I2 is down 0.36% in August 2024, while up 5.8% over the past six months. August has been a volatile month in the markets, but Columbus has performed steadily. Since its inception in June 2008, the Columbus I2 class has gained 148%, outperforming European equity indices.

August was a difficult month for the markets for various reasons, such as the situation in Japan and employment in the US. The stock markets suffered a sharp correction in the first days of the month (Stoxx50: -6%, Nasdaq: -8%), although they recovered as the days went by. This correction is an indication that the valuations of some assets, especially in the US technology sector, are excessive. At the same time, the US economy is showing signs of exhaustion.

Fortunately, the interest rate cycle is about to turn, which provides good support for the markets and smallcaps in particular. In Europe, valuations are more than reasonable, and we continue to find a lot of value in good European companies that manage to grow globally in a not entirely favorable macroeconomic environment, with very good returns on capital and solid cash flow generation.In August, we have had a good performance in relevant positions such as Kinepolis (+9%), Reply (+9%), YouGov (+8%) and Dalata (+7%). We have also seen a significant rebound in two positions that until now had penalized us: Mobico (+21%), which released good results, and Grifols (GRFB +16%, GRFA +8%), where the process for a potential takeover bid continues. On the negative side, this month has been difficult for Teleperformance (-17%) due to a change of management, and Trainline (-11%) and Kontron (-14%) also fell despite reporting good results.

We have initiated new positions in the portfolio which we will discuss in the coming months. We are also reducing our exposure to the financial sector.

 

Download monthly factsheet [PDF]

 

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.

Report July 2024

Pareturn GVC Gaesco Columbus European Equity Fund class I2 is up +3.3% in July 2024 and +5.0% over the last three months. July has been a positive month for the Fund. Since its inception in June 2008, Columbus I2 class is up 149%, outperforming European equity indices.

July was a good month for the Fund, especially in relative terms (Stoxx 600: +1.3%). Throughout 2024 we have benefited from several IPOs such as Salcef and Neoen but we have suffered in some positions that are now starting to recover. A prime example is Grifols which rose +18% in July (+27% in Grifols B) a complex situation but where we have a good entry price. Although there is the possibility of an opportunistic public offering by the Brookfield fund, which could benefit us, we believe that the long-term evolution of the company has more potential.

In July, we also had a good performance in relevant positions such as Fresenius, which rose +19%. We have increased our investment in this company, as we continue to see great potential with low risk. Other companies that also performed well were Hiscox (+11%) and Elementis (+10%), both mentioned in the press due to speculation about possible bids. Mobico (+10%) and Teleperformance (+21%) also recovered; although the latter had experienced a notable correction in previous quarters, we still see potential in them.

On the negative side, we had a negative result with Scor (-16%), which issued a profit warning. So far, the reinsurance company had performed well. In this case, we believe that the company’s risk management has proved to be insufficient. We also continued to reduce the position in Unicaja as we believe that after the 47% rise in the year it has a reduced capacity for revaluation. We have initiated two positions in the portfolio which we will discuss in the coming months.

 

Download monthly factsheet [PDF]

 

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.