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| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Lansdowne European Fund delivered -1.62% in Q4 2024, outperforming the MSCI Europe benchmark's -2.72% return. The concentrated portfolio of 20-30 European holdings focuses on companies with resilient operating models and attractive valuations. Key contributors included Compass Group, which delivered strong results and guidance supporting the medium-term growth thesis, and Essilor Luxottica, which benefited from Meta partnership developments. Leonardo showed strong operational performance with cost efficiency gains ahead of schedule. Detractors included materials companies Linde and Sika, which faced persistent demand weakness in industrial end markets despite maintaining strong operating leverage. The manager reduced exposure to Michelin due to competitive pressures from Asian imports affecting volume growth. CapGemini faced cyclical IT services weakness but trades at attractive trough valuations. The strategy maintains conviction in holdings' medium-term prospects while selectively adjusting positions based on changing fundamentals. Portfolio positioning reflects patience for end market recovery while capitalizing on temporary weakness in quality names.
Concentrated European equity strategy focused on mid to large cap companies with strong fundamentals, resilient operating models, and attractive valuations that can generate alpha through fundamental analysis of industry capital cycles.
The manager maintains a constructive but selective outlook, focusing on companies with resilient operating models and market share gains despite challenging end markets. They await recovery in end markets while continuing to believe in the medium-term growth potential of their holdings.
As of Dec 31, 2024
Daniel Avigad serves as portfolio manager of the Lansdowne European Fund and Head of the Lansdowne European Long Only Strategy. He joined Lansdowne Partners in April 2006 and has been a Partner since April 2011, serving on the Management Committee since September 2018. Daniel holds a Master's degree with Distinction in Information Technology and a First Class Honours Bachelor degree in Mechanical Engineering with Mathematics from the University of Nottingham, and is a CFA charterholder. Prior to Lansdowne, he spent five years in the Pan-European telecoms services equities research team at Dresdner Kleinwort Wasserstein. Over a 2.4-year period managing the European strategy, Daniel has achieved an annualized total return of +14.6%, outperforming his peer group composite by 5.3%.
The Lansdowne European Fund employs a concentrated, fundamental analysis-driven approach targeting mid and large-cap European securities. The investment philosophy centers on generating consistent, absolute risk-adjusted returns through exceptional investment talent within a leading-edge operational infrastructure. The fund focuses on identifying European companies that are undervalued with significant potential for value creation or revaluation, using rigorous fundamental bottom-up research informed by both capital cycles and long-term structural change. The approach results in concentrated portfolios with 20-30 companies, focused on maximizing returns relative to risk while maintaining strong corporate governance standards. The fund believes companies with strong corporate governance are more likely to deliver sustainable value to shareholders in the long term.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
Fund runs concentrated 20-30 position portfolio with clear thesis articulation for individual holdings. Manager provides specific valuation metrics (24x for Compass, 25x for Linde) and makes decisive position adjustments. However, hedged language around awaiting recovery and market conditions prevents higher scoring.
Growth Outlook
Manager acknowledges challenging conditions with US manufacturing in recession and recessionary end-markets, but frames these as cyclical rather than structural. Expects recovery in end markets and sees current weakness as temporary.
Risk Appetite
Portfolio remains fully invested with selective position adjustments. Added modestly to Linde on weakness while reducing Michelin exposure. No significant defensive positioning or cash raising mentioned.
Capital Deployment
Modest net activity with small addition to Linde offset by reduction in Michelin. No cash level changes mentioned. Represents minor portfolio rotation rather than significant deployment or de-risking.
Forward Guidance
Manager takes a wait-and-see approach, awaiting recovery in end markets while maintaining current positioning. No clear bias toward aggressive deployment or defensive positioning.
Language Signal
Language includes risk terms like recession, weakness, and downgrades, but balanced with opportunity language around attractive valuations, market share gains, and medium-term growth prospects.
Perceived Risk
Manager acknowledges multiple risk factors including manufacturing recession, competitive pressures from Asia, and recessionary end markets. Risks are discussed with specific examples but not characterized as systemic threats.
Opportunity Density
Manager sees selective opportunities in quality names trading at attractive valuations during cyclical weakness. Emphasis on selectivity and patience suggests moderate rather than abundant opportunity set.
Time Horizon
Clear medium-term focus with discussion of 3-5 year growth algorithms and through-cycle performance. Manager willing to hold through short-term volatility and add on temporary weakness, indicating multi-year investment horizon.
Top Conviction Themes
Key Catalysts
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