2018-H2

The market

Finally, the markets are discounting the various political risks. The softness of the economic indicators has certainly contributed to the regain of fears.

Our portfolio

Our investments have taken their toll in a bearish market, especially in small caps. We are taking advantage of this renewed volatility to accumulate five positions in puzzled sectors.

  • We bought a real estate developer in England, which fell down with the political indecision on the Brexit.
  • Similarly, the automotive sector, although highly cyclical, is a favorable ground for finding opportunities.
  • The crisis of the Italian budget allowed us to buy a healthcare company.
  • We continue to capitalize on the paradigm shift in the retail business to buy well-known brands. The challenges of the consumer discretionary sector are real, but offer opportunities like our purchase in the luxury goods business.

We are net buyer after several semesters of cash accumulation.

Going forward

We were patiently waiting to invest our cash and so we did as soon as opportunities were available. We still hold enough cash to navigate any kind of environment. We are acknowledging that we are at the end of the current economic cycle and will position the portfolio to be profitable through the next cycle, which imply further weakness and more investment opportunities.