Dear investors,
Dear prospective customers,
Welcome to the manager's commentary for the reporting month of August for the Hard Value Fund, your fund for financial sustainability.
Geopolitically, spring and summer have proven to be a challenging environment for equities. The significant tensions between the US, China, Russia, and India are only partially reflected in the capital markets. Our quantitative and qualitative analysis leverages even a challenging environment to assess risk and return and ensure a healthy balance.
One sector that can clearly benefit from this, as is so often the case in times of geopolitical tension, is the gold and gold mining sector.
This sector has grown steadily in recent months and, as in the previous month, has become the second-largest sector in the Hard Value Fund. Gold stocks also benefited in the reporting month: Kinross Gold became the largest holding in the Hard Value Fund and delivered a performance of over 25%.
Companies like Novo Nordisk also achieved double-digit returns in the reporting month. Due to our favorable entry point and the significant discount currently being traded, the company continues to offer potential.
Our nuclear and fossil energy sector contributed negatively to performance in the reporting month. Power plant operators, especially those like Constellation Energy, suffered double-digit losses. Despite the share price reaction, our fair value remains above the company's current market value.
Our cash flow rate fluctuated between 11% and 14% during the reporting month. We continue to seize opportunities, but based on our analysis, we have opted for a slightly higher cash flow rate at these valuation levels.
It is also particularly pleasing that we were able to further reduce our volatility and increase our Sharpe ratio. Right on schedule at the end of the month, the Hard Value Fund reached a new all-time high. The performance of the individual tranches is as follows:
- R-Tranche: +1,65 % per month, +21,03 % year-to-date, +48,80 % since inception
- I-Tranche: +1,68 % per month, +21,18 % year-to-date, +50,85 % since inception
- S-Tranche: +1,82 % per month, +23,86 % year-to-date, +58,17 % since inception
We would also like to thank you for the trust you have placed in us. Our fund volume has continued to grow steadily and currently amounts to approximately EUR 18.77 million.
Please feel free to contact us if you have any further questions.
Warm regards
Patrick Grewe
Your asset manager
Patrick Grewe