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Monthly Report 11/2022

By December 5, 2022March 13th, 2023No Comments

Dear Friends and Investors,

The KEN European Growth Champions Fund gained +6.38% in the month of November The average net exposure was 83.77% with the long and short books +9.92% and -3.02% to performance.

The market environment this month was generally robust Small and midcaps have underperformed so far this year, with uncertainty about when the segment would regain demand The MDAX is lagging around 20% behind the DAX year to date. We referred to this divergence at the beginning of the year. Moreover, we have recently observed significant price increases among some small and midcaps and the associated signs of bargain hunting in the market. Since current valuations are very attractive, the focus on potential risks has been put off to the medium term. We have thus positioned the portfolio more constructively: the short side has been starkly reduced and the long side expanded accordingly. With regard to individual stocks, we see upside potential in value stocks such as Traton (0.5 x P/B), Kion (0.7 x P/B) or Thyssen. In November, portfolio winners included Zalando, Swissquote and Meyer Burger. Our position in Majorel stagnated after its main competitor Teleperformance took a nosedive on the back of accusations of dubious work conditions. Majorel’s valuation continues to allow for patience toward the stock. Regarding the short side, it no longer has center stage given the current market environment but continues to be actively managed to take advantage of any opportunities that arise.