European markets continued to rise during February. There was little in the way of new geo-political news to disrupt markets – and markets remain hopeful that US-China tariffs will be reduced going forward. February was a busy month for companies reporting. The results season also acted as a positive catalyst for markets, with the majority of companies producing positive results, or at least results which were not as bad as had been feared, suggesting that the market had become unduly pessimistic towards the end of 2018.
The fund enjoyed a positive February. A number of our companies reported good results over the month, and this led to significant strong share price performances, most notably from Dometic (equipment supplier to the leisure markets) and Bravida (environmental services). Two of our financial holdings also had strong share price appreciations over the month – Unicredit and ING Groep.
The laggards, in terms of share price performance tended to be companies such as BE Semiconductor Industries, which effectively paused for breath following recent strong share price appreciation, and more defensive companies such as Sanofi.
No new investments were undertaken over the month.