We have had the opportunity to speak with the manager of one of the funds that we have on our Focus List, the White Fleet IV DIVAS Eurz Val (LU1975717056).
This background has little to say… I mean a picture is worth a thousand words. This fund concentrated in some 25 European companies has been +27% YTDbut after 5 years it has an impressive +25.1% annualized!
Fuente: Morningstar Direct
It is true that the fund has greater volatility than its index. With almost 24% compared to 17% of his benchmark. Of course, the profitability is substantially higher.
From the interview I would take away several things. First of all, the diversification strategywhich he achieves with just 25 titles. Second, its strategy to achieve Alpha regardless of market conditions. And, of course, his vision of what is the value.
He told us about his adventure with banking and how he now has a lot exposure to cyclicaccording to the vision he has of the European economy. And his vision is more bottom-up. In fact, it is quite sector agnostic and it is much more driven by company fundamentals. It is normal, therefore, for the background to have a Average PER well below average of the market, managing to capture that growth derived from the discrepancy between the valuation of the companies in which it invests and its real price that does not reflect the market in the short term.
I was surprised by your car exhibition. Although the general perception is of little confidence in the sector, Hansueli has good prospects. And, be careful, the returns that accompany it attest that it usually hits the nail on the head. Of course, as he explained to us, within these types of companies you have to dive to find those that truly have value.
Another sector that he likes, and I insist that his vision is not so much about the sector as about companies, is beer. I mention it as a curiosity, because I’m sure many readers attest that it is one of the niches within drinks that continues to maintain momentum.
These investments concentrated They have brought very good returns. Some of the companies in its portfolio have more than 100% growth in one year and many have double-digit growth.
I want to insist that it is a fund with higher volatility than its index, but also, in which It is one of the most profitable funds. Not only this year, but in 3 and 5, vastly outperforming its competitors. In fact, It is always the first quartile, highlighting YTD already one year, and sweeping 3 and 5.
Fuente: Morningstar Direct
It may not be a fund for everyone, but it is for many. In addition, it has a good decorrelation if our portfolio is dominated by American or more global securities.
As I said at the beginning, I shouldn’t say much about a background that speaks for itself. All I can say is noise that is superfluous in view of the results.