The Exor investor journey

Exor, the Agnelli family holding company, currently trades at around a 50% discount to its NAV. We first invested in the European Value Fund in March 2020 at an average purchase price below EUR 50 per share. While the stock peaked at around EUR 105 in late spring 2024, performance has since disappointed and the share price is now back near EUR 70.

The main reasons are well known: weakness at Stellantis and, more recently, a less supportive phase for Ferrari. Despite that, Exor remains a core holding in the Fund for three reasons: the quality of John Elkann’s capital allocation, the strength and diversity of the underlying assets beyond autos, including The Economist and Christian Louboutin, and the historically wide discount to NAV, which could narrow again toward its longer-term average of around 35%.

What also makes Exor attractive is its rare quality-value mix. As Jan David Meyer of Taunus Trust recently pointed out, even excluding private assets, Exor trades at roughly 14x the earnings of its main holdings, versus more than 27x if those same assets were bought directly, largely due to Ferrari’s high valuation. Several core holdings have also recently corrected, making the entry point more appealing. Through Exor, we gain exposure to that portfolio at an even lower valuation, including Ferrari at a price we consider acceptable.

This note is provided for information purposes only and does not constitute investment advice or a recommendation to buy or sell any financial instrument.