Turbulent conditions

The sea of red in equity markets shows no signs of abating. The S&P 500 has now declined 8.6% since February 19, 2025, while the Mag-7 stocks have plunged 20.5% since December 17, 2024. Just yesterday, the S&P 500 wiped out $1.4 trillion in market capitalization.

A mix of high valuations, geopolitical tensions, and economic uncertainty under Trump 2.0 is weighing on investor sentiment. At ECP, we remain humble—calling a market bottom in this volatile environment, especially with the current unpredictability of U.S. leadership, would be premature. Instead, we stick to our principles.

While our long-only portfolios are naturally affected by these turbulent conditions, they remain well-diversified with a European tilt, holding companies with strong balance sheets and resilient cash flow generation. Now, in our funds, we are starting to deploy our well-defended dry powder, selectively reinvesting capital into promising opportunities. As a result, we are actively screening for new investments—staying disciplined, patient, and ready to act.