What happened during the month?
QSR Global was 4,4% in December, while the MSCI world in Euro was 3,3%. This brings ytd performance to 7,7% (MSCI World in Euro 20,5%) and +18,5% since I took over as PM end of June ’22 (MSCI world 7,8%).
Biggest winners last year were our European bank sector position (+5,1% to fund performance) which we scaled out of in Q1, the contrarian value long in Vonovia (3,0% to fund) which we reduced in December, but is still the biggest position in the fund, as the discount to NAV is still almost 50%, and our long in Cameco (2.4% to fund) along our energy theme, we reduced the position to only 1,5% for the fund and will wait for a bigger pullback to increase again.
Biggest detractors were our short in the S&P index (-3,2% to fund), short positions in several loss-making US tech firms rallying back strongly from 2022 and Tesla (-2,3% to fund), which doubled in price despite earnings estimates for 2023 and 2024 dropping by 45% over the course of the year and increased regulatory scrutiny on their FSD failure. Also, I-80, a gold mining company with 100% on their assets in the US, was a main detractor (-2,9% to fund). I-80 shares had done very well in 2022, but last year performed poorly despite very strong drilling results, as the company is still mainly developing its assets and so has a high cash burn. Concerns about capital increases drove down the stock. I-80 has a very valuable asset base in one of the best mining jurisdictions in the world. They will increase production and revenue strongly this year and have announced a JV with another mining company which should ease funding concerns once the details are finalized. I remain highly confident in the management and the mining assets; it is one of our top positions in the fund…. Complete commentary in this months newsletter.
Factsheet QSR Global – December 2023
Newsletter – December 2023
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