Dear investors,
Dear prospective customers,
Welcome to the manager's commentary for the November reporting month of the Hard Value Fund. Your fund for financial sustainability.
The year is drawing to a close and the final trading days are approaching. Nevertheless, the current market environment remains challenging, both geopolitically and from a valuation perspective. Stocks with a high beta factor and asset classes such as cryptocurrencies struggled considerably during the reporting month.
The Hard Value Fund has demonstrated its stability even in this environment. Our conservative approach does not reflect individual sectors, but is based on the stability and profitability of each allocated company. Our sectors are derived from this intrinsic strength.
In the current geopolitical environment, the aviation and defense sector is under the greatest pressure. It contributed negatively to performance in the reporting month. Short-term developments only influence our fair value calculation if the fundamentals change significantly.
This development allowed the gold and gold mining sector to become the largest sector in the Hard Value Fund. Companies like Fresnillo and Kinross, in particular, recorded double-digit gains in value during the reporting month. Despite the price increase, these companies are still trading significantly below our currently calculated fair value and continue to offer considerable upside potential.
Our active management also includes actively controlling the cash register turnover rate. This allows us to seize opportunities. For example, we were able to reduce our cash register turnover rate from around 8% to 3%.
You can find the exact performance figures in the displayed key performance indicators:
- R-tranche: +0.49% per month, +25.31% year-to-date, +53.48% since inception
- I-Tranche: +0.53% per month, +25.58% year-to-date, +56.83% since inception
- S-Tranche: +0.41% per month, +28.69% year-to-date, +65.16% since inception
The positive trend continues: We recorded further inflows this month and are pleased to welcome additional investors. The assets under management amount to approximately €27.2 million.
Please feel free to contact us if you have any further questions.
Warm regards
Patrick Grewe
Your asset manager
Patrick Grewe