During November, the markets kept up the momentum. The STOXX600 YTD return increased from 9.5% to 12.4%. This was an increase of 290 basis points or +1080 basis points compared to the end of September when YTD return was only 1.6%. Our European portfolio showed a significant outperformance. It went from a YTD return (TWR) of 31.6% at the end of October to 45.4% at the end of November. That’s an increase of 1380 basis points! Whilst a significant portion of this performance will undoubtedly be down to luck, our strategy has now outperformed the market by a significant margin for 6 years in a row.

The stocks that contributed most to this good result were:

• Rottneros (+68.7%) reported interim results for the period January - September 2015. Income after net financial items amounted to SEK 80m compared to SEK 52m during the same period in 2014. Cash flow generation remained very strong, and management decided to pay out an extra dividend of SEK 0.4 per share.
• MGI Coutier (+14%) increased its guidance for the FY and now expects revenues of €800m to €830m, which represents and increase of more than 20%. MGI Coutier remains by far our largest position.
• Agfa Gevaert (+30%) reported top line growth of 3.9% compared to Q3 2014. EBITDA as a % of revenues increased from 8% to 9.1% and management expects to end the year at close to 10%. 22 positions showed an increase in value, and only 2 positions showed minor declines.

This month, we add 2 positions: an undervalued company that helps extract much-needed resources from remote parts of the world and another company that brings you to your favorite destinations.

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