Within the first 6 months of 2023, the Worth & Alternative portfolio gained +5,0% (together with dividends, no taxes) towards a acquire of +12,8% for the Benchmark (Eurostoxx50 (25%), EuroStoxx small 200 (25%), DAX (30%), MDAX (20%), all TR indices).
Hyperlinks to earlier Efficiency opinions might be discovered on the Efficiency Web page of the weblog. Another funds that I comply with have carried out as follows within the first 6M 2023:
Companions Fund TGV: 3,6%
Squad European Convictions +7,6%
Frankfurter Aktienfonds für Stiftungen 6,9%
Squad Aguja Particular State of affairs +5,3%
Paladin One -0,8%
Alphastars Europe + 11,4%
Total, the portfolio efficiency was within the decrease third of my peer group. Because the peer group is usually Small cap targeted, the general relative low returns correspond with the returns of European small cap indices and are mosly properly under Giant cap indices. Trying on the month-to-month returns, it isn’t troublesome to see that particularly January and June have been in relative phrases very disappointing.
Particularly within the final 2 weeks or so, some positions have been topic to very “indiviual” impacts, akin to ABO Wind and their concept to rework themselves right into a authorized construction (“KGaA”) that will curtail shareholder rights, or Sto that was impacted negatively by a really weak outlook from competitor Steico. Or Thermador, which suffered for no apparent cause.
That this 12 months can be a troublesome one in relative phrases was already clear from January. I nonetheless assume that the portfolio gives nice potential, however quick time period share worth momentum is clearly not superb for a lot of of my positions. Fortunately, I don’t must care in any respect about quick time period developments, I’ll proceed to deal with the mid- to long run which, I hope, will convey good outcomes.
2023 is a kind of years the place I’m very joyful that I don’t handle third social gathering cash. I can solely think about what sort of discussions I would wish to have with shoppers who wouldn’t perceive why the efficiency is to this point behind the benchmarks. Fortunate me !!!
The present portfolio might be seen as at all times on the Portfolio web page.
In Q2, I offered Rockwool and Recticel after my deeper dive into insulation corporations. Rockwool at a acquire of ~28%, Recticel at a lack of -9%. The second half of the 12 months shall be robust for European constructing corporations, so perhaps there’s a probability to extend the publicity to chose gamers.
I additionally exited VEF because it grow to be by some means to small to trouble at a lack of ~-10%. This had been a pleasant winner in between however nowadays, Fintech seems like a lifeless duck. Nonetheless I’ll hold monitoring them. I additionally offered extra Meier & Tobler because the share worth is above my mid time period goal.
There have been no new positions, solely place will increase in Schaffner and Sto.
Remark: “AI has saved the day”
What a distinction 9 months make. In Q3 2022, issues regarded very unhealthy for something associated to expertise. The Covid growth was over, Tech corporations have been lowering their forecasts and slicing jobs and Nasdaq share costs have been kind of in free fall. In retroperspective, all of this almost definitely modified with the November thirtieth launch of ChatGPT.
ChatGPT not solely turned the quickest rising client app with extra then 100 mn signal ups after 2 months, it additionally injected new life into the tech sector. “Generative AI” as it’s now identified is meant to be the “huge subsequent factor” that may make everybody’s life significantly better and produce large quantities of cash to Tech corporations.
As at all times, the large Tech corporations gained most, as buyers take into account their moats so sturdy that they may win even when they don’t have a devoted product like Apple. Within the wake of the Massive Tech corporations, additionally a variety of the “fallen ShitCo Angels” have made some spectacular good points and the same old “ShitCo Tech Bros” have fun themselves for 2023 good points on FinTwit.
“Generative AI” appears to have woke up investor’s animal spirits in report time and even in early stage VC, the cash begins flowing freely once more like this 105 mn Seed spherical for a 4 week previous AI start-up from France.
To not be outdone, German buyers are already flocking again to newly listed Shitcos like ParTec which mixes (after all) Quantum computing and AI.
Marc Andreesen from A16Z already annonced in early June that “AI will save the world”. For now, AI has clearly saved the world for Enterprise Capitalists and Tech Traders. Just lately I used to be pitched by a VC claiming that Generative AI and Blockchain are inseparable and due to this fact Blockchain will come again with a vengance, too.
Personally, I’m not 100% certain if and the way justified the present AI hype is. This is primarily based on my remark of the primary AI Growth that occurred round 4-5 years within the VC world.
Even again then, each startup claimed to have superior AI capabilities. A few of these start-ups like Lemonade and Upstart made it to the inventory alternate. Now after a few years it has grow to be fairly clear, that these AI capabilities have been nice on paper however sadly didn’t result in a superior end result in enterprise efficiency for no matter cause. One other a lot hyped AI case, Self driving vehicles, additionally turned oput to be a lot tougher than initially thought and other than some native successes, full self driving appears nonetheless a few years away.
One other remark is the next: Lots of the present AI supporters like A16Z, Sadya Nadella or others declare that AI shall be this excellent “Copilot” for people, serving to us to reinforce our talents and no hurt shall be accomplished to anybody.
Nonetheless, once I was studying the accessible AI literature 5 years in the past, most authors agreed on one factor: AI will develop and iterate at a digital pace. So as soon as AI is sweet sufficient to actually assist us in many alternative conditions, it’s inevitable that AI will be capable to these things in a really quick time with out human assist as it would iterate extremely quick. My recommendation for younger folks can be: Don’t aspire to grow to be a “Immediate Engineer”, that occupation received’t final that lengthy in any case.
So for the longer term we may have almost definitely two eventualities and I’m not certain which is extra possible:
- AI capaibilities, regardless of ChatGPT and Midjourney are nonetheless rudimentary and it’ll nonetheless take a very long time till they actually make a distinction OR
- AI capabilities are already far superior and in very quick time AI based mostly algorithms will create havoc in lots of areas of life
Possibly I’m too pesimistic right here, however I don’t see the mild, “save the world” properties of AI but. The one clear winners of the present hype are clearly VCs and the “tech ShitCo Bros” who’re in a position to pump the subsequent technology of ShitCos.
In the intervening time, I personally I really feel extra snug with “brick and mortar” enterprise fashions which are arduous to exchange with AI than something that might be impacted severly akin to Software program.