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
Explained in 90 seconds
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Investment Focus
ISIN-No. LU0631859575
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: 27.03.2024)
NAV: CHF 348.61 (26.03.2024)
Rolling performance (26.03.2024)
I-CHF | Benchmark | |
24.03.2023 - 26.03.2024 | 19.18% | 11.88% |
25.03.2022 - 24.03.2023 | -9.00% | -13.07% |
26.03.2021 - 25.03.2022 | -11.11% | -3.37% |
26.03.2020 - 26.03.2021 | 69.58% | 72.14% |
Annualized performance (26.03.2024)
I-CHF | Benchmark | |
1 year | 19.18% | 11.88% |
3 years | -1.21% | -2.05% |
5 years | 6.62% | 5.21% |
10 years | 7.12% | 6.02% |
Since Inception p.a. | 8.38% | 7.98% |
Cumulative performance (26.03.2024)
I-CHF | Benchmark | |
1M | 7.32% | 5.79% |
YTD | 15.06% | 8.54% |
1 year | 19.18% | 11.88% |
3 years | -3.59% | -6.02% |
5 years | 37.86% | 28.95% |
10 years | 99.05% | 79.58% |
Since Inception | 178.89% | 166.08% |
Annual performance
I-CHF | Benchmark | |
2023 | 10.13% | 6.12% |
2022 | -26.50% | -24.32% |
2021 | 15.16% | 19.23% |
2020 | 16.14% | 11.43% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term and actively 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. The qualities of these companies – a focused business model, Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | CACEIS Investor Services Bank, Luxembourg |
Fund Administrator | CACEIS Investor Services Bank, 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% (with High Water Mark) |
ISIN number | LU0631859575 |
Valor number | 13084214 |
Bloomberg | BFLESIC LX |
WKN | A1JG2J |
Total expense ratio (TER) | 1.48% (29.02.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (29.02.2024, base currency EUR)
Beta | 0.87 |
Volatility | 16.50 |
Tracking error | 6.48 |
Active share | 90.80 |
Correlation | 0.93 |
Sharpe ratio | 0.13 |
Information ratio | -0.18 |
Jensen's alpha | -0.80 |
No. of positions | 42 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Benefits & Risks
Benefits
- Above-average top line growth driven by high innovation and strong pricing power.
- Higher operating margins on the back of high market share ("Champion in the niche") combined with good cost discipline.
- 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 actively 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
Against this backdrop, the Fund increased 3.0% (EUR / B shares), outperforming its benchmark by 228 bps. This brings the total outperformance over the two first months of 2024 to 484 bps.
Top detractors in the month were LEM Holding (-16.2%), Neoen (-14.1%), and Montana Aerospace (-10.0%). LEM reduced its annual sales guidance by 5% as client destocking is not showing any sign of bottoming out yet. Still, the new sales guidance implies stable revenue q/q suggesting no further deterioration. Alike the whole renewables segment, Neoen continued to be impacted by the negative combination of higher rates and lower power prices. At current levels, Neoen’s EV is equivalent to the value of its fixed assets, which seems way too harsh given the company’s value creation track record. Neoen nevertheless confirmed its 2024 and 2025 targets reminding the market that ca 90% of its revenues are contracted and consequently not sensitive to market fluctuations. Montana published a solid pre-close statement, confirming both profit guidance for 2023 and the 2024 outlook in line with consensus expectations. We continue to remain confident in the investment case in view of the group’s attractive valuation, strong improvement in fundamentals on the back of the Aerospace OEM recovery and very limited exposure to the current Boeing problems.
Top performers in the month were Cargotec (+18.7%), BESI (+19.6%) and Rovi (+15.6%). Cargotec delivered in line Q4 results with an encouraging 5% beat at order level. The 2024 margin guidance of >10% is close to historical highs, including Kalmar margin above 11%. The separate listing of Kalmar in 2024 was confirmed, which will simplify the group structure, crystalize value and further help reduce Cargotec’s conglomerate discount. BESI Q4 results confirmed once again its best in class profitability, with a strong 37% EBIT margin despite revenues being close to a cyclical trough. Besi’s Hybrid Bonding technology is gradually taking off. Rovi delivered a 15% EBITDA beat on good costs control, both at the SG&A and R&D levels. The management reiterated its guidance for MSD revenue decline in 2024, which could prove conservative as the global demand for CMO capacity remains very strong. Also, the recent acquisition of CMO Catalent by Novo Nordisk could bring new customers to Rovi.
Documents
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