June 2020 Quarterly Report - Strategic Selection Fund - European Value

160720 Market Commentary

June 2020 Quarterly Report - Strategic Selection Fund - European Value

Executive Summary

  • Performance overview
    • MSCI Europe up 12.6% during Q2 2020
    • Our portfolio performed better than market and the value index, outperformance mainly driven by stock selection
  • Investment cases
    • Move to quality companies has continued during Q2
    • 4 new names joined portfolio, 3 names were sold
  • Market environment & outlook
    • Fiscal responses and central banks’ actions appear up to the task and will help in after-Corona world
    • Stock markets are all about anticipation and market is positioning itself for an end of the crisis.
    • Our portfolio companies are solid and adapting: they will survive through 2020 crisis
    • European equities are under-owned and cheap relative to the US
    • Median margin of safety of portfolio 41%
    • 10% cash left to seize new investment opportunities