NESTOR Europa fund slipped slightly in Q1, shedding 1.54% (V class) (MSCI Europe Index -5.35%). The considerable outperformance trend for the fund thereby continued in a weaker market environment. We would prefer to make new acquisitions in large cap companies (SAP, FMC, Inditex) since we now see a considerable improvement in the opportunities/risk ratio here in comparison with many small and midcaps.
Milan fashion company Moncler reaches for the stars
In particular, stocks from the high-end consumer sector such as Moncler, Aeffe, Puma and Adidas escaped the general market correction observed in Q1 - in each case following exceptional reports. Whilst the Milan fashion house Aeffe (“Alberta Ferretti”, “Moschino”) continued its impressive turnaround, its neighbour Moncler secured further improvements to its already astronomic profitability. The ambitious management team now also wants to ascend to the heavens of international fashion and compete with the large established brands. A strategy which is not without risk, but also one which success-spoiled entrepreneur Remo Ruffini is certainly capable of achieving.
Fund provider Ökoworld secured a very good performance, benefiting from political tailwind as regards sustainable investment as well as from steady cash flows. On the other hand, the shares in the Austrian asset manager C-Quadrat were again sold. We had initially closed out our position in this stock following the takeover bid, though were able to reacquire shares over a weak period at a favourable price on the market.
NESTOR Europa fund with very good opportunities/risk ratio
“The best fund is the one that perfectly achieves its investment target,” is the motto in the fund industry and in this regard NESTOR Europa fund thoroughly deserves first place in the “crash test” carried out by the specialist magazine DAS INVESTMENT (03/2018). We continually point out that we aim to achieve an exceptional opportunities/risk ratio through our multiple diversification. To this end, we invest in various company sizes, countries and sectors and add turnaround, deep value and growth stocks to our successful value builders at selected moments to smooth out returns.
Outlook
Market corrections offer regular opportunities for making fine adjustments to the portfolio. Relative strengths and weaknesses of sectors and individual stocks can supply important information for the fund management here, but above all they offer opportunities for snapping up bargains. As we consider current interest rate and protectionism fears to be exaggerated, we remain confident for the equities market. Differentiation within the sectors will become more challenging though.