On track for 7 wins in a row

Olivier Dambrine 08 Nov 2016

While the STOXX600 continued its downward trend and ended October at -7.3%, our European portfolio maintained its upward course by adding 560 basis points. This brings the YTD return (TWR) to +19.2% or an alpha of 26.5! To see an up to date chart of the YTD performance, click here. To see the chart of the portfolio performance (+386%) since inception 7 years ago, click here.

How did we manage to achieve this excellent result in October? Well, 2 out of 3 positions showed very decent performances with 7 stocks having double-digit growth. 10 positions lost value but none of these showed losses in excess of 10%. And the largest position in our portfolio added a whopping 18.8% due to good results.

The strongest performers in October were:

  • Agfa-Gevaert (+32.8%) announced that it has been approached by CompuGroup, a German medical software company. Details about the potential offering price were not disclosed.
  • MGI Coutier (+18.8%) reported a 15.3% increase in H1 revenues. Operating income went up 34% and the company was able to achieve a 47% growth in net income.
  • Rottneros (+15.4%) did not report any interim results but it appointed a new chairman and a new CFO.
  • Ercros (+15%) moved higher without any major news.

Only 1 position showed a loss worth mentioning:

  • U10 (-9.2%) reported a 23,8% decline in revenues due to stock clearance and lower prices.

This strong YTD performance puts us well on track to beat Mr Market by a significant margin for 7 consecutive years. Get your newsletter subscription today at the reduced price of only €14.9/month. Bundle it together with a stock screener subscription and the price drops below €8/month. Start your value investing journey today. You won't regret it!