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In August, the fund posted a negative performance, driven by our Short book and hedging.
Within our Core Longs, we suffered from the AI weakness as investors grew concerned around the ROI of AI, with comments from Sam Altman and companies like Meta restructuring their AI division leading to a negative sentiment.
Our positions in SAP and Microsoft suffered from this uncertain narrative.
On the Trading Long, our position in Fresenius drove returns as they reported another solid quarterly print.
The turnaround story of the company continues with some attractive mid-tern catalysts which can lead to growth acceleration into 2026.
On the short side, we suffered from the market rotation, with names like LVMH rallying and some short squeezes.
Europe EUR | 19.9 % |
Others | 7.8 % |
North America | 1.0 % |
Europe ex-EUR | -2.6 % |
Index Derivatives | -12.2 % |
We strive to build a high-conviction portfolio of long and short positions, based on a thorough fundamental company analysis to identify the best opportunities in Europe.
Market environment
European equities rose in August, albeit underperforming US equities. A large rotation occurred in Europe with the momentum factor underperforming and stocks in the Autos and Luxury spaces among the best performers.
In the US, the Goldilocks momentum continued, despite the softening of the labor market and overall uncertainty around the health of the US economy.
The Tech sector experienced a relative underperformance following growing skepticism around the secular AI theme’s fundamentals, given the rich valuations and elevated positioning.
In the Long/Short Equity space, European funds struggled with one of the worst alpha months since January 2022 driven by losses from concentrated longs, utilities and the French political instability.