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.

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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.

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.

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.

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.

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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.

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.