Paris-based asset manager Talence Gestion has revamped its three-year horizon equity fund Talence 2018, the company said.
The strategy, launched in November 2015, was due to be liquidated by year-end in line with its investment policy, a eurozone equity fund focused on companies that implemented restructuring programmes and aimed at delivering annualised 7% net returns at the end of 2018.
At the end of February, annualised returns of the fund were 7.11% and around 60% of the positions sold. But Talence Gestion’s management has finally decided to not drop the fund and entirely reshuffled its investment policy since it wanted to fully play the eurozone recovery thematic, as explained in a notice to shareholders seen by InvestmentEurope.
The firm believes in a sustainable recovery of the eurozone and that a number of stocks held in the portfolio of Talence 2018 as well as other names identified by the team could have an important upgrading potential over the coming years.
Hence, the fund has been renamed as Talence Situations Spéciales since 26 March 2018 and has no more liquidation date set. Its scope has been extended to special situations which are defined by Talence Gestion as:
- companies engaged in a restructuring process that should lead to an increase of their stock valuation;
- companies potentially involved in merger and acquisitions deals either as a target or as a market consolidator;
- companies whose valuation’s drop following specific announcements/events is considered much exaggerated by the team;
- companies currently held in portfolio with the option of further investments in those stocks.
The Talence Situations Spéciales fund seeks to outperform the Euro Stoxx Net Return and is co-run by Jean-François Arnaud and Régis Lefort. It had over €30m in assets under management as at 28 February 2018.