Final outcome for the French presidential elections


Fund Commentary
16 Jun 2017


European financial markets moved upwards during the month of May, with the Fund’s benchmark up +1.46%. As mentioned last month, the French elections result confirmed the first round outcome and removed a key risk for the markets.

In that context, the Fund recorded a +2.74% return in May, outperforming its benchmark. Year to date the Fund has delivered +18.39%, an outperformance of +8.57%.

Unieuro (please see the April monthly commentary) was the most significant monthly contributor to performance, followed by VA-Q-TEC and Lisi. At the other end of the spectrum, Granges, Bertrandt and Tom Tailor were the three main detractors. The number of positions remained constant in May as the Fund disposed its investments in Kardex and Bertrandt and initiated two new positions, Boozt in Sweden and another one still being built.

Similar to April, the Investment Adviser decided to participate in an IPO: Boozt in Sweden, a leading e-commerce fashion retailer in the Nordics that should benefit from the continued growth in the Nordic online market and from its strong position in the mid/premium segment. The IPO price translates in a slight premium to 1x 2017 revenues with a potential to, at least, triple the sales level in the next 5 years and to generate a 6 to 10% operating margin.

Following that investment, the Investment Adviser has initiated a complete review of European companies with a pure online business model that are either disrupting existing businesses or accelerating business opportunities through platform models. As of today, a number of them are already profitable, have built barriers to entry to protect their businesses and kept the potential to multiply their revenues in the next 5 to 10 years by a sizeable factor.


The views and statements contained herein are those of Pascal Investment Advisers SA in their capacity as Investment Adviser to the Fund as of 12/06/17 and are based on internal research and modelling.