Bellevue Entrepreneur Europe Small (Lux)
Owner-operated or family-run companies think in generations, not in quarters
Solid balance sheets, high innovative strength and safety awareness have a positive effect on the share price
Companies impress with high ESG scores
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. LU0631859062
The Fund invests in small capitalized, listed owner-managed companies in Europe where an entrepreneur/founder family holds at least a 20% of a company’s voting rights, thereby exerting signif. influence. The team pursues a fundamental, bottom-up approach in identifying the most attractive founder-controlled companies while maintaining an investment portfolio diversified by country, sub-sector and style (Value, GARP, Growth).
Indexed performance (as at: 20.05.2022)
NAV: EUR 357.52 (19.05.2022)
Rolling performance (19.05.2022)
I-EUR | Benchmark | |
19.05.2021 - 19.05.2022 | -12.82% | -5.09% |
19.05.2020 - 19.05.2021 | 48.40% | 49.77% |
17.05.2019 - 19.05.2020 | -2.68% | -6.48% |
18.05.2018 - 17.05.2019 | -19.15% | -7.04% |
Annualized performance (19.05.2022)
I-EUR | Benchmark | |
1 year | -12.82% | -5.09% |
3 years | 7.96% | 9.93% |
5 years | 3.40% | 6.35% |
10 years | 12.56% | 13.20% |
Since Inception p.a. | 10.13% | 10.85% |
Cumulative performance (19.05.2022)
I-EUR | Benchmark | |
1M | -5.76% | -6.59% |
YTD | -18.57% | -14.82% |
1 year | -12.82% | -5.09% |
3 years | 25.91% | 32.93% |
5 years | 18.21% | 36.08% |
Since Inception | 186.02% | 207.03% |
Annual performance
I-EUR | Benchmark | |
2021 | 20.30% | 24.71% |
2020 | 16.25% | 11.74% |
2019 | 28.25% | 28.47% |
2018 | -28.51% | -15.79% |
Facts & Key figures
Investment Focus
The Fund invests in small capitalized, listed owner-managed companies in Europe where an entrepreneur or a founder family holds at least a 20% of a company’s voting rights, thereby exerting significant influence. The typical qualities of these companies – a focused business model, fast decision-making processes, Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | RBC Investor Services, Luxembourg |
Fund Administrator | RBC Investor Services, Luxembourg |
Auditor | PWC, Luxembourg |
Launch date | 30.06.2011 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 0.90% |
Subscription Fee (max.) | 5.00% |
Performance Fee | 10.00% |
ISIN number | LU0631859062 |
Valor number | 13084174 |
Bloomberg | BFLESIE LX |
WKN | A1JG2G |
Total expense ratio (TER) | 2.19% (29.04.2022) |
Legal Information
Legal form | SICAV Luxembourg jurisdiction |
SFDR category | Article 8 |
Key data (29.04.2022, base currency EUR)
Beta | 0.90 |
Volatility | 18.80 |
Tracking error | 5.92 |
Active share | 92.97 |
Correlation | 0.96 |
Sharpe ratio | 0.55 |
Information ratio | -0.55 |
Jensen's alpha | -2.27 |
No. of positions | 51 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Opportunities & Risks
Opportunities
- Owner and family-run businesses think in generations, not in quarters.
- Focus, a sense of responsibility, strong identification with the company, and personal financial commitment have a positive impact on the share price.
- More conservatively financed, lower debt exposure and a higher risk capacity compared to non-family businesses.
- Multi-award-winning management team with a long and successful track record investing in owner-run firms.
- Entrepreneurs for entrepreneurs – the Bellevue Group is itself an owner-run company with the majority of shares held by employees.
Risks
- The fund invests in equities. Equities are subject to price fluctuations and so are also exposed to the risk of price losses.
- Shares in smaller businesses are generally traded in lower volumes and are subject to bigger price fluctuations than larger enterprises.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- The fund may invest a proportion of its assets in financial instruments that might under certain circumstances have a relatively low level of liquidity, which can in turn affect the fund’s liquidity.
- The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
Review / Outlook
Small and mid caps, as measured by the MSCI Europe Small Cap ex-UK, declined 2.1% in April, a more robust performance compared to very weak global and US markets (SPX -8.8% in USD). Geopolitical tensions, growth and inflation scare dominated, with China’s lock downs further weakening the top down picture. Inflation data reached new records in the US and Eurozone and government bond yields kept rising while central banks become more hawkish. In the Eurozone Q1 GDP increased 0.4% qoq in line with expectations but surprisingly declined 1.4% on an annualized pace in the US. Flash Eurozone PMI rose to a 7-month high of 55.8 in April from 54.9 in March, led by Services (57.7 vs 55.6) which benefited from loosen COVID restrictions, and helped offset the waning manufacturing output (50.4 vs 53.1), impacted by production curbs and ongoing supply constraints. In term of sector, energy (+3.5%), utilities (+3.3%) and materials (+2.6%) performed best while real estate (-6.7%), healthcare (-6.6%) and information technology (-6.5%) lagged the most.
Against this backdrop, the fund declined 2.2% (EUR / B shares), in line with its benchmark.
Top detractors in the month were BESI (-24.6%), Zur Rose (-11.2%) and Kamux (-13.2%). BESI, the Dutch semi equipment manufacturer, reported Q1 revenues and profitability in line or above forecasts, but the order intake disappointed due to both China lockdowns and a seemingly weak innovation cycle with Telco clients. Both are likely to normalize through 2022/23, while the announced sector Capex roadmap confirms good growth ahead. With net cash at hands, EBIT margin of 45% and hybrid bonding technology ramping up, we see significant upside potential at valuation <12x EBIT. Following the publication of its FY figures and the postponement of its EBITDA breakeven point by one year to 2024, Zur Rose continued its downward trend, down to the level of CHF 100, which we consider a trough value scenario, asserting zero value to the German eRx opportunity. On April 25, German Health minister Lauterbach finally sent positive signals for the roll-out of digitalization and e-script, propelling the shares up 20%. We continue to believe that the 30’000 test prescriptions required for the mandatory introduction of e-script will be achieved at the latest in the second half of 2022. Kamux, the Finish online car retailer, gave back all its March performance in April, penalized by falling consumer confidence. At 12x and 9.5x EBIT 2022 and 2023, Kamux is trading close to its trough multiples, 25% below its 5-year average and half its peak levels. Contrary to a common belief, Kamux' 20% trend growth is much more driven by the shift from offline to online than the used car market itself.
Top performers in the month were Melia (+17.0%), Bakkafrost (+8.2%) and Polypeptide (+17.4%). Melia, the Spanish hotel chain company, continued to benefit from the positive tourism and travel industry pointing to record levels of summer bookings and ahead of 2019 levels. The Norwegian salmon producer Bakkafrost benefited from a strong salmon market, underpinned by prices reaching new highs. We note that Bakkafrost in-house marine based feed production is also a good protection against rising input costs. After having risen more than 110% following its IPO in 2021 and fallen 40% ytd in the indiscriminate rotation out of growth stocks, Polypeptide regained the attention of investors, thanks to its excellent defensive growth characteristics. With one of the broadest portfolio among the peptide CDMO players, an attractive late stage pipeline, as well as the rising outsourcing trend, Polypeptide is very well placed to outperform the underlying peptide drug market, itself already structurally growing at 7% p.a.
After a rebound in March, equity markets are finally catching up with reality. Supply driven issues like availability of goods, commodity price inflation etc. slowly shift to demand side worries around consumer demand and risk to growth. Market sentiment is poor and better than feared Q1 earnings delivery did nothing to change this. The growth category has taken a serious beat with many names down 50% to 60% since the highs of 2021. On the aggregate, sentiment and positioning seem not bearish enough yet for markets to stage a reversal. We remain well diversified across all styles and sectors, favoring quality companies inherent to our Entrepreneur universe squaring strong balance sheets, high margins and capital returns. These times ask for experienced stock picking along the main themes of rising inflation, slowing growth, post COVID reopening, energy dependence and ESG.
Past performance is not a reliable indicator of future results and can be misleading. As the sub-fund is denominated in a currency that may differ than an investor’s base currency, changes in the rate of exchange may have an adverse effect on prices and incomes. Performance is shown net of fees and expenses for the relevant share class over the reference period. Show moreShow less