With an increase of +4.94% (V share class), the NESTOR Europa fund performed very well in the 3rd quarter, while the benchmark index MSCI Europe TR only gained +0.24%. Since the beginning of the year, the fund price has risen by +31.32% (MSCI Europe TR +15.97%).
One man's joy, another man's sorrow - Jumbo SA complains about logistics cartel
At present, the global economy is marked by strong distortions, which have an extremely unfavourable impact on the inflation rate. Although some areas, such as timber and iron ore prices, have already rebounded strongly, container freight rates remain at an extremely high level, which has a very positive effect on our participation A.P. Moeller Maersk. Eurokai and Logwin also reported a significant increase in profits. On the other hand, the high logistics costs are detrimental to other fund investments. For example, the Greek retail group Jumbo SA recently complained bitterly that "the market is suffering from unfair practices and partnerships between certain logistics companies that control the availability of containers for the transport of goods". Worldwide, no government or competition committee has done anything to break the informal cartel, he said. The first result of these practices, he said, is that freight rates - which are unreasonable - are kept at outrageous levels with various excuses that would convince no one but the naïve." Unfortunately, for companies with little "pricing power", such cost inflation is likely to prove extremely unpleasant!
Ökoworld AG quadruples earnings in the first half-year
With a growth rate of a good 398%, the profit explosion at Ökoworld AG continued in the first half of 2021. The net profit for the half-year rose from € 8.5 million to € 33.9 million. For this reason, we also continue to consider the significantly increased share price level to be appropriate. However, the percentage increase in profit should by no means be extrapolated to the full year. As the impact of ESG regulations should continue to provide a strong tailwind for fund inflows, the stock remains our first choice in the long term. Temporary declines in income from performance fees should be taken into account.
Spanish Health Care Providers with Good Figures
The Spanish healthcare companies Prim SA and Clinica Baviera (eye clinic) presented strong figures. Prim Group recently completed the purchase of the orthopaedic activities of Ilunion Salud and of Orto Ayudas, a company specialised in electric mobility, seating, positioning and technical aids. Through these activities, Prim expands its geographical presence with new clinics in Madrid, La Coruña, Ferrol, Toledo and Granada and includes a team of 37 qualified employees. The acquisition of the orthopaedic clinics is part of the Prim Group's strategic plan, which foresees significant business growth both organically and through targeted asset acquisitions
Outlook
Although the terrain has become a little bumpier at present due to the unpleasant inflation situation, shares should be among the better alternatives available on the market. In addition, there are areas that have so far been among the corona losers but still have the recovery phase ahead of them. We remain very attentive in this regard and will keep a particular focus on consumer behaviour. We see temporary market volatility in autumn as a buying opportunity.With an increase of +10.67% (V share class), the NESTOR Europa fund again outperformed the benchmark index MSCI Europe +6.47% in the second quarter. Since the beginning of the year, the fund price rose by +25.83% (MSCI Europe +15.46%).
Dirk Stöwer, Kontor Stöwer Asset Management GmbH