21 NOV, 2023
The Echiquier Major SRI Growth Europe fund has experienced a rebound in the first seven months of the year. Despite a difficult market environment, the fund has delivered positive returns and weathered the summer correction. We take a look at how the fund has done this.
Despite the uncertainties surrounding the Chinese economy and rising long-term interest rates in the United States, the Echiquier Major fund has performed well in the face of market corrections. Solid selection of defensive stocks such as Relix and Voltaire has been crucial in managing risks and maintaining stability. In addition, the success of Nordisk, a Danish pharmaceutical company, has contributed significantly to the fund's positive performance.
The fund focuses on resilient growth sectors and companies with strong cash generation capabilities, especially in high interest rate environments. By closely monitoring companies' debt levels and cash generation capacity, the fund's portfolio remains well positioned for long-term growth. Recent adjustments to the fund's holdings, including reducing exposure to sensitive stocks in the automotive sector and strengthening positions in defensive profiles, demonstrate its proactive approach to risk management.
A standout company in Echiquier Major's portfolio is Ferrari. With annual sales growth forecast to exceed 8% by 2025, Ferrari's strong sales growth and high valuation justify its solid market position. The company's high ROE and EBITDA margins make its valuation comparable to luxury companies. By maintaining a portfolio focused on 30 quality stocks, Echiquier Major ensures long-term growth and selectively invests in market leaders with low debt, strong cash flow generation and pricing power.
Echiquier Major's resilience and skillful investment approach have proven effective in weathering market ups and downs. By strategically selecting defensive stocks, investing in resilient growth sectors and incorporating ESG criteria, the fund has been able to achieve positive returns and position itself for long-term growth. Investors can draw inspiration from Echiquier Major's strategies to navigate market volatility and achieve their financial goals.