Stand 30.06.2023:
The Alken Fund Small Cap Europe rose 4 0 in June against 0 8 for the benchmark This brings the relative performance to 0 9 year to date Equity markets moved upwards in June amid robust economic activity, tight labour markets and incremental economic stimulus from China Central banks, however, remained hawkish until there is clear evidence of lower inflationary pressures Among the largest contributors was Technip Energies, which rose alongside the energy sector boosted by a resilient industry outlook, healthy balance sheets and supportive valuations Vallourec surged on the back of improving cash generation prospects as restructuring initiatives are starting to yield positive results In contrast, SES Imagotag suffered from a short seller report Energean PLC remained under pressure following the revision of its full year production guidance during the prior month Investors shift in recent months has exacerbated performance differences between growth and value, a valuation discrepancy which we believe is not sustainable We do not expect interest rates to move down any time soon and, in a relatively resilient economic environment, we continue to focus on value cyclicals and small and mid cap names with good business fundamentals and attractive valuations