John Surplice. John Surplice sustituirá a Jess Taylor como responsable de renta variable europea de Invesco
Invesco has announced that Jeff Taylor will retire from his role as Head of European Equities at the end of 2020, after almost 20 years in the role and 23 years at Invesco. Taylor will hand over leadership responsibilities to John Surplice, his co-manager on the Invesco European Equity Fund (UK).
John will work alongside Jeff for the rest of the year as co-head of the team and will assume the role of Head of European Equities from 1 January 2021. The investment strategy and process across the portfolio will remain unchanged.
Jeff Taylor said: “I’m fortunate to work with very talented and experienced investors who are all focused and committed to delivering the best outcomes for our clients. In planning for a successor, it was crucial to ensure consistency in our investment philosophy and process. John shares my vision for the portfolio and team and has a deep understanding of our clients’ ambitions, as well as strong leadership qualities. I look forward to working with John and the rest of the team for the remainder of the year.”
Stephanie Butcher, Chief Investment Officer said: “We would like to thank Jeff for his dedication to clients over the years and his role in building a team of highly talented and experienced investment professionals. He has always placed a huge amount of importance on nurturing talent and supporting career progression and his leadership has ensured that there is great strength and depth across the European Equities desk. I would like to add my personal thanks for all the support he has given me over the many years I have worked with him. John’s broad contribution to the team, his investment insights and strong relationships with clients make him a natural successor to Jeff, and I look forward to working with him in the leadership role in the future.”
John has been with Invesco for 24 years, as a core member of the European Equities team and has worked with Jeff for the majority of that time. He co-manages several funds, including the Invesco European Equity Fund (UK) with Jeff as well as the Invesco Pan European Equity Fund with Martin Walker.
Further strengthening the team
With John taking on additional responsibilities, Invesco also announces the appointment of James Rutland to the European Equities team. James joined Invesco as a fund manager in early June and will co-manage the Invesco European Opportunities Fund (UK) alongside John.
James joins Invesco after more than five years at Schroders, where he was a key member of the European Equities team and had co-managed successful European portfolios since 2016 (Schroders ISF European Alpha Focus and Schroder ISF European Opportunities). Previous to that he had worked on the sell side and in investment banking. He brings with him a total of 12 years of industry experience as an analyst and a fund manager.
Commenting on his appointment John said: “I look forward to continue working with Jeff for the rest of the year and thank him for all his support during our time spent working together. The personal development of the team has always been high on his agenda and it will continue to be high on mine. I would also like to welcome James to the team, he has a thorough knowledge of European stocks which should benefit our clients and the team as it continues to strengthen its skillset and expertise.”
Pixabay CC0 Public Domain. Eaton Vance Management lanza Calvert ESG Leaders Strategies, una gama de fondos de renta variable para inversores institucionales y profesionales
Eaton Vance Management has launched Calvert ESG Leaders Strategies, a new series of equity separate account strategies for institutional and professional investors offered by Calvert Research and Management, a subsidiary of Eaton Vance.
The Calvert ESG Leaders Strategies are co-managed by Jade Huang and Chris Madden, vice presidents and portfolio managers at Calvert. The strategies invest in the common stocks of selected companies with leading environmental, social and governance (ESG) characteristics as determined by Calvert. Calvert serves as the investment adviser to the strategies.
Calvert ESG Leaders Strategies are:
Calvert U.S. ESG Leaders
Calvert Tax-Managed U.S. ESG Leaders
Calvert Global ex.-U.S. Developed Markets ESG Leaders
Calvert Tax-Managed Global ex-U.S. Developed Markets ESG Leaders
Calvert Global Developed Markets ESG Leaders
Calvert Tax-Managed Global Developed Markets ESG Leaders
Calvert Emerging Markets ESG Leaders
The Calvert ESG Leaders Strategies seek to invest in companies that are leaders or emerging leaders in ESG factors that Calvert believes are material to long-term performance. The investment process has three primary components: stock selection, portfolio optimization and corporate engagement. The strategies seek to use corporate engagement to strengthen how portfolio companies manage material environmental and social exposures and governance processes and to enhance investment returns.
“Calvert’s proprietary, industry-leading research system enables us to identify companies that are leading their peers in managing financially material ESG risks, and which may be poised to take advantage of business opportunities based on their knowledge of and commitment to meaningful ESG practices,” said John Streur, president and chief executive officer of Calvert. “Financial materiality is a critical component of ESG analysis. We believe understanding the connection between sustainability factors and business success sets these companies apart and positions them to maneuver efficiently and effectively in an evolving world.”
Calvert ESG Leaders Strategies employ a dynamic investment approach that leverages quantitative and qualitative analysis and a risk-managed portfolio construction process, while seeking to effect positive change.
“In developing the strategies, we conducted a quantitative review of ESG leaders’ past performance,” said Ms. Huang. “The results indicate that companies that achieved top ESG scores in financially material factors have historically produced stronger financial performance than those with weaker ESG scores. Additionally, we found that by optimizing the portfolios, we could position the strategies to achieve positive environmental and societal impact by increasing exposure to companies with healthier environmental footprints and better gender diversity.”
The U.S. spring stock market rally extended with a solid gain in May as a gradual ending of various virus lockdowns, a nascent world economic recovery, and rising expectations for a COVID-19 vaccine remedy fueled the advance. The unprecedented U.S. and world fiscal and monetary policy backdrop, confrontational dynamics between the U.S. and China, bankruptcies, presidential election year uncertainties, worries over a virus ‘second wave’ in the U.S., and Hong Kong social unrest will likely prevail through year end. We expect government spending initiatives on infrastructure and transportation soon.
Monetary (hypersonic) and fiscal policy dynamics are largely in place to jump start consumer spending and the hardest hit parts of the economy as reflected by the BOTL stocks (Banks, Oil, Travel and Leisure), which have paced the recent market surge. We echo, “how bad is bad, how long will bad last, how good will good get” and “which stocks have discounted the bad and have a bright future?” For our value investing, we use the Gabelli Private Market Value (PMV) with a Catalyst™ stock selection process to spot stocks selling below intrinsic value.
First quarter earnings season is in the books and second quarter numbers are now becoming more visible every day with July starting the second quarter earnings season. So far, stocks have rallied sharply from the March lows with the U.S. markets leading the way over foreign stock indices. However, the overall stock market appears to be discounting current monetary and fiscal policies. Though deal activity has been suppressed by recent events, we expect M&A to pick up for small, mid-sized and microcap companies as the economy progresses. As oil prices crashed so did the related stocks. Potential deals await – stay tuned.
Chairman Powell and the Fed have done a terrific job responding to the complex pandemic. One tool used by other central banks the Fed has not used is a negative policy interest rate, so we were encouraged to hear New York Fed President John Williams say on May 28th, at Stony Brook University in Long Island, “I don’t think negative rates is something that makes sense given the situation we’re in because we have these other tools that can be used…that I think are more effective and more powerful to stimulate the economy.”
Column from Gabelli Funds, written by Michael Gabelli
__________________________________
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552
Class I EUR – LU0687944396
Class A USD – LU0687943745
Class A EUR – LU0687943661
Class R USD – LU1453360825
Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648
Class I EUR – LU1216601564
Class A USD – LU1216600913
Class A EUR – LU1216600673
Class R USD – LU1453359900
Class R EUR – LU1453360155
Disclaimer:
The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
Pixabay CC0 Public DomainLifeofbreath. Lifeofbreath
U.S. equities took a roller coaster ride on economic recovery hopes vs a second wave of virus fears during June that ended on the plus side for both the month and the second quarter, which scored the best return since the 4th quarter of 1998.
On June 8th, the National Bureau of Economic Research, a private economic research group recognized as the arbiter for determining the start and end dates of U.S. business cycles, announced that its Business Cycle Dating Committee “has determined that a peak in monthly economic activity occurred in the U.S. economy in February 2020. The peak marks the end of the expansion that began in June 2009 and the beginning of a recession. The expansion lasted 128 months, the longest in the history of U.S. business cycles dating back to 1854.”
Fed Chair Powell concluded his June 30 testimony saying: “We understand that the work of the Federal Reserve touches communities, families, and businesses across the country. Everything we do is in service to our public mission. We are committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible.”
If U.S. growth continues to recover from here, the current recession may turn out to be one the sharpest and shortest on record. Some of the near term catalysts that will likely determine whether the U.S. economy has entered a sustainable expansion include the sequence of results during the second quarter (June better than May better than April), the leading indicators traceable to the all-important service sector, the phase 4 stimulus bill estimated at one trillion dollars, infrastructure spending, employment dynamics, a COVID-19 second wave and vaccine progress, China’s economy, and November U.S. Presidential Election dynamics with a focus on corporate and individual tax rates.
Column by Gabelli Funds, written by Michael Gabelli
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552
Class I EUR – LU0687944396
Class A USD – LU0687943745
Class A EUR – LU0687943661
Class R USD – LU1453360825
Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648
Class I EUR – LU1216601564
Class A USD – LU1216600913
Class A EUR – LU1216600673
Class R USD – LU1453359900
Class R EUR – LU1453360155
Disclaimer:
The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
After one of the worst months in stock market history, equities rebounded sharply in April, with the S&P 500 posting its largest monthly gain since January 1987 as it began to discount a phased-in reopening the economy, the massive monetary and fiscal policy response, and some encouraging COVID-19 treatment developments. The snap-back in the market is, however, fairly concentrated, with mega cap technology stocks being the prime beneficiaries. Most small capitalization companies and businesses with any exposure to “BOTL” (banks, oil, travel & leisure) continue to trade at prices significantly lower than pre-crisis levels.
The impact of COVID-19 continues to take its toll on the US economy. Since mid-March, over 30 million Americans have filed for unemployment. The continued economic shutdown has pressured more companies to lay off or furlough employees. The ramifications of strict stay-at-home orders from state officials has forced many companies to suspend financial guidance for 2020 as they reassess their businesses. As lockdown measures ease, government officials and economists are hopeful that a large portion of these temporary unemployed Americans will be able to quickly return to paid employment.
The Fed has responded by expanding its balance sheet, with estimates that it could exceed $12 trillion by the end of the year. Congress continues to fund the coronavirus support package in order to replenish money for the Paycheck Protection Program (PPP) as well as ramp up testing for COVID-19.
Only time will tell whether the revival in the market is too optimistic and how severe any “second wave” of COVID-19 may be. In these unusual times, we remain hopeful that advancements in COVID-19 testing and treatments (and eventually a vaccine) will allow the economy to at least partially recover and operate in a greater capacity in the near-term. We continue to believe that strong companies with healthy balance sheets and positive free cash flows will be able to withstand these times of economic uncertainty.
Looking specifically at merger arbitrage for April, closed deals bolstered performance and other transactions made significant progress towards closing. These positive dynamics spurred investor confidence across the current pipeline of deals. While pending deal spreads remain wider than pre-COVID levels, they have narrowed from levels experienced in March. We are still encountering attractive opportunities to selectively deploy capital where there are clear paths to closing and we are highly confident of a deal’s success. While April was an expectedly quiet month for new deal activity, a number of new deals were announced in May, including Alexion’s acquisition of Portola Pharmaceuticals for $1.4 billion and A Menarini’s acquisition of Stemline Therapeutics for $700 million.
Column from Gabelli Funds, written by Michael Gabelli
__________________________________
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552
Class I EUR – LU0687944396
Class A USD – LU0687943745
Class A EUR – LU0687943661
Class R USD – LU1453360825
Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648
Class I EUR – LU1216601564
Class A USD – LU1216600913
Class A EUR – LU1216600673
Class R USD – LU1453359900
Class R EUR – LU1453360155
Disclaimer:
The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
Pixabay CC0 Public Domain. El 66% de los gestores europeos de gran capitalización superaron a su índice de referencia
COVID-19 is having a sizeable impact on the business operations of both fund managers and investors, according to Preqin’s latest release, disruption caused by travel restrictions and social distancing will lead to dampened activity through the remainder of 2020, and possibly into 2021. However, they believe that alternatives funds proved to be resilient in previous cycles, and in the longer term, investors seem set to increase their allocations as a result of the pandemic, accelerating future AUM growth.
“A dispassionate analysis based on previous financial crises would suggest that we will see three major outcomes for alternative assets,” said Preqin CEO, Mark O’Hare. “A significant short-term slowdown in activity; a medium-term resumption of the established growth trend; and a long-term outperformance of those funds which were able to capitalize on advantages being presented now. We are already seeing this start to be borne out, with activity in 2020 down from previous years and operators telling us they expect this to characterize the year ahead. Overall, it’s unlikely that COVID-19 will fundamentally alter investors’ attitudes to alternatives, but it may well accelerate some long-term trends and moderate others.”
The alternatives industry is not a single entity, and within each asset class the pandemic is likely to be felt to different degrees and in different ways. Preqin has been surveying and interviewing fund managers and investors across the industry, looking at 2020’s activity so far, and drawing comparisons with previous financial cycles. For this edition, the firm notes:
Private Equity: Accelerating Digital Transformation. Private equity firms have almost $1.5tn in dry powder to deploy into deal opportunities, so they are well-placed to take advantage of opportunities presented by a downturn. However, in the short-term the reality of social distancing will hamper deal closing. Retail, leisure and hospitality assets are set to be hit hard, although supermarket retail specifically will benefit. Digital technologies will benefit, particularly in non-cyclical sectors like healthtech and remote working – accelerating interest in already-growing areas.
Private Debt: The Difficult Second Album. The 2008 Global Financial Crisis was the making of the modern private debt industry, putting the spotlight on distressed debt funds and spawning the direct lending sector. 2020 will see if the asset class can repeat that feat – interest in distressed debt has spiked in Q1, and more than a third of investors are now targeting the strategy. Direct lending, meanwhile, is untested in the face of a crisis, and COVID-19 may put a stumbling block in the path of the sector’s expansion.
Real Estate: Logistical Opportunity. Rental income from businesses and private housing has seen a sharp drop since the start of March, impacting the short-term cash flow of real estate fund managers. Deal activity is likely to be particularly depressed through the rest of 2020, given the practical challenges in evaluating properties. In the longer term, COVID-19 will exacerbate the challenges already faced in the retail sector, and may deflate the market for city-center offices. Demand for logistics assets, though, is likely to spike – last-mile delivery has emerged as a particular opportunity for expansion.
Real Assets: Do Not Pass Go. Toll-based assets and travel-related assets have been hit hard by travel restrictions, with the impact increasing the longer that restrictions are in place. Government-backed bailouts in the travel and shipping sectors are currently aimed at operators rather than asset-owners, so recompense is uncertain. Conversely, social and digital infrastructure have significant growth opportunities as demand for healthcare infrastructure and broadband networks rises. Oil price volatility continues to disrupt the natural resources industry, and more than a quarter of investors are avoiding conventional energy investments in 2020 as a result.
Hedge Funds: Time to Shine. Losses in Q1 2020 wiped out gains made by hedge funds in 2019. But the asset class did act to protect investors from worse downturns in equity markets, showing their value as a defensive strategy. This may reverse recent negative sentiment from investors as the downturn extends. However, it will also likely lead to a flight to safety, benefiting large managers and prompting more consolidation in the sector. New launches will fall as new managers are deterred from raising vehicles to seek investment. Strategy-wise, equities funds are more likely to see outflows, while macro and multi-strategy funds could benefit on the basis of their defensive credentials.
Foto cedidaHoward S Marks, director y co-presidente de Oaktree Capital Management.. Howard S Marks (Oaktree Capital Management): "Estamos ante un mercado respaldado artificialmente por las compras de la Fed”
In order to be a good investor you have to be confident in your views says Howard S Marks from Oaktree Capital Management.
In the 1980s, he became one of the first investors to specialize in beaten-down bonds. He is now trying to raise $15 billion for what would be the biggest-ever fund to invest in distressed debt. He is also raising a separate $3.5 billion fund designated for underwater real estate assets.
During the 73rd annual CFA Institute conference, he also mentioned that in this environment, where returns will be lower for longer, the secret to prevailing is to produce better returns than your peers. “The market is what it is, rates, and the return environment is what it is, so superior investors control their emotions to deviate from the herd and outperform.”
The billionaire contrarian investor reminded the viewers that “in order to combat the virus we put the economy into a deep freeze… Investors are not experts on the virus, we are just taking ideas from experts which you have to pick according to your bias, but all are cautious to varying degrees.”
Although he agrees with Mr Powell in that extreme and unprecedentedactions are called for, he is also aware that stocks and bonds are selling at prices they wouldn’t sell at if the Fed were not the dominant force.
More than once he has quoted that “capitalism without bankruptcy is like Catholicism without hell” and he believes that today’s, is a market which is artificially supported by Fed buying, so he expects plenty of debt defaults and bankruptcies when corporate borrowers start running out of cash in the months ahead.
Marks is not alone, according to Preqin, as of mid-May , distressed real estate funds have already accumulated nearly $10 billion worth of dry powder, waiting to invest once the Fed inevitably steps back.
Raphael Thuin, courtesy photo. Tikehau Capital nombra a Raphael Thuin responsable de su división Capital Markets Strategies
Tikehau Capital, an alternative asset management and investment group, appointed Raphael Thuin as Head of its Capital Markets Strategies offering, as of 11 May 2020.
Thomas Friedberger, CEO and Co-Chief Investment Officer of Tikehau Investment Management, said: “We are delighted to welcome Raphael Thuin to our team. His experience and deep understanding of equity and fixed income markets perfectly complement our long-term fundamental management approach. We look forward to him making a significant contribution to further development of our Capital Markets Strategies business”.
Raphael will oversee the management of Tikehau Capital’s bond, equity and flexible investment strategies. This range of funds provides access to long-term conviction-based management of investment grade and high-yield corporate bonds, financial bonds and equities of all capitalisations with investment capacity across Asia, Europe and North America. Assets under management of Tikehau Capital’s Capital Markets Strategies activity amounted to EUR 3.8 billion at 31 December 2019.
A graduate of the HEC School of Management, Raphael Thuin began his career in 2005 as a portfolio manager for Topaz Fund in New York. In 2008, he joined the capital markets business of Société Générale, also in New York. Since 2014, he was Head of Fixed Income Management at TOBAM in Paris.
. Artcles presenta una exposición virtual que reúne a artistas como Banksy, George Condo, Kaws y Jeff Kooms
A R T C E L S makes its highly anticipated Los Angeles launch presenting the world’s first asset-based tokenised contemporary art exhibition with works from Banksy, George Condo, Kaws and Jeff Koons. The 3D images will be available until May 18th at this link.
A R T C E L S is the brainchild of commodities trader, Gijs de Viet and London-based contemporary art gallerist, Elio D’Anna of the House of Fine Art (HOFA), who designed it to open the lucrative world of blue-chip art investments to a wider and younger international market. The pioneering contemporary art exhibition will offer investors equity in the form of digital tokens backed by shares in the artworks as registered assets of a London UK based Limited company.
Citing the Economist, Gijs de Viet explains that “Fine Art has been the single best performing asset class over the last 100 years, so it’s about time this opportunity be opened up to a much wider group of investors.” He adds, “A R T C E L S’ mission, is to provide a new alternative to traditional ways of investing in art whilst building a bold and diverse portfolio of Contemporary Art with a focus on rare editions and works on paper to attract younger, web-savvy investors with an offer on high-end assets and high value shares.
A R T C E L S parcels blue-chip contemporary art into shares worth a minimum of £390 ($500) determined through proven quantitative strategies for art asset acquisitions and made available exclusively to subscribers. Art connoisseurs and enthusiasts will get a chance to view A R T C E L S’ two week “XXI” exhibition, taking place at HOFA Los Angeles’ virtual gallery, where artworks by Banksy, KAWS, Damien Hirst, George Condo, Jeff Koons and other blue-chip artists will be on display. “Prospective investors will have the opportunity to choose between sole acquisitions or investments in wider, diversified art portfolios which offer fractional ownership and reduced risk. Whatever their choice, they can be assured they are investing in carefully sourced art, where their values are projected to appreciate based on expert analysis of market trends.” They conclude.
At the livestreamed Berkshire Hathaway annual shareholders meeting in Omaha on Saturday May 2, Chairman Buffett offered his frank and erudite views on the unprecedented human and economic challenges of the pandemic crisis. In his characteristic plain spoken style he gave these thoughts: “I’m convinced nothing can stop America”… “We haven’t faced this particular problem in the past” …”We’ve faced tougher problems and the American miracle, the American magic, has always prevailed”… “This is quite an experiment”…”We don’t know what happens when you voluntarily shut down a portion of your economy”…”I’m learning about this the same way that you are…There’s an extraordinarily wide range of possibilities on the health and economy sides and nobody really knows.” He also stressed why dry powder (lots of cash) and unused corporate debt capacity are important since the unexpected is to be expected. On the topic of potential M&A with Berkshire’s current record over $130 billion in cash, he said: “We’re willing to do something very big.” Possibly in the $30-50 billion transaction range as mentioned in the financial press. Stay tuned.
U.S. stocks looked through COVID-19 and economic driven gloom during April as unprecedented central bank easing and government fiscal policy stimulus spurred the best monthly gain since January 1987 and the best April return since 1938. Widespread fragile world economic conditions, a continuation of dour earnings, rising bankruptcies, and a potential second wave of virus contagion are likely to provide some sizeable potholes for the financial markets for a while.
We are focusing our stock research efforts on the long term beneficiaries of the digital revolution – speed, pipes, content, direct to consumer, telemedicine, remote health care, AI, automated vehicles, and warehouse logistics dynamics. Financial flexibility and rigorous capital allocation procedures are the long term ingredients for financial success for both companies and investors. This is the core strength of of the Gabelli Private Market Value (PMV) with a Catalyst™ stock selection process and its goal to find stocks selling below intrinsic value.
Column by Gabelli Funds, written by Michael Gabelli
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GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
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GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
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