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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Ennismore European Smaller Companies Fund 2025 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Ennismore European Smaller Companies Fund)

Primary Source Intelligence • Q1 2025 Letter Analysis

Ennismore European Smaller Companies Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Ennismore European Smaller Companies Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+5.4%

YTD+5.4%

Annualized+11.3%

Positioning StanceConstructive

Market CapSmallCap

GeographyEurope

Digest Analysis

Quick Take

"With shorts contributing 386bps."

Executive Summary

Ennismore European Smaller Companies Fund delivered a strong 4.6% return in March 2025, driven primarily by the short book contributing 386bps with the long book adding 60bps. The fund maintains an absolute return approach focused on European smaller companies, currently running 86.1% long exposure and 40.2% short exposure for 45.9% net exposure. Key contributors included Vossloh AG benefiting from German railway infrastructure spending, Secure Trust Bank providing clarity on car finance legal cases, and profitable short positions in Swedish IP and UK technology companies. The manager highlighted Thermador Groupe as a compelling new investment opportunity, representing a French fluid circulation distributor trading at attractive valuations following cyclical weakness in energy renovation markets. Despite near-term headwinds from housing market weakness and MaPrimeRenov subsidy delays, the manager sees structural tailwinds from energy efficiency demand and government support. The portfolio maintains selective positioning with confidence in earnings growth prospects for core holdings like Costain Group while taking advantage of market dislocations through both long and short strategies.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

75%

CautiousHigh

High Conviction (75%)

The manager demonstrates high conviction through detailed fundamental analysis of Thermador Groupe, specific upside targets (65% to 2026), and confident statements about earnings growth for core holdings. The long/short positioning and selective capital deployment reflect strong conviction in identified opportunities.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager expresses cautious optimism about selective opportunities while acknowledging cyclical headwinds. They see structural tailwinds in energy efficiency and infrastructure spending but expect limited recovery in some end markets this year, indicating a mildly positive but measured outlook.

Risk Appetite

40%

DefensiveAggressive

Defensive (40%)

The fund maintains significant long exposure at 86.1% while running 40.2% short exposure, indicating moderate risk appetite. The manager is selectively adding to positions like Amadeus Fire and initiated a new position in Thermador Groupe, showing willingness to deploy capital in attractive opportunities.

Capital Deployment

20%

De-riskingDeploying

De-risking (20%)

The manager shows modest deployment activity by slightly increasing the Amadeus Fire position and initiating a new position in Thermador Groupe. However, overall exposure levels appear relatively stable with no major portfolio restructuring indicated, suggesting selective rather than aggressive deployment.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

The manager provides measured forward guidance, expecting modest recovery in 2026 for key holdings like Thermador with 7-8% sales growth. They express confidence in earnings growth for core positions while acknowledging near-term challenges, indicating cautiously constructive expectations.

Language Signal

35%

BearishBullish

Bearish (35%)

Language reflects balanced optimism with terms like 'compelling investment', 'attractive valuations', and '65% upside' for Thermador, while acknowledging 'cyclical weakness' and 'headwinds'. The tone suggests selective confidence rather than broad market enthusiasm.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

The manager acknowledges cyclical risks in housing markets, subsidy program delays, and sector-specific challenges while maintaining significant short exposure (40.2%) as a hedge. Risk perception is moderate, with awareness of near-term headwinds balanced by structural opportunity identification.

Opportunity Density

60%

ScarceAbundant

Selective (60%)

The manager identifies selective opportunities in European smaller companies, highlighting specific situations like Thermador's cyclical weakness creating attractive entry points and infrastructure spending benefiting rail companies. Opportunity set appears moderately rich in targeted areas rather than broadly abundant.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

The investment approach reflects medium to long-term thinking with 2026 targets for Thermador, focus on structural tailwinds in energy efficiency, and willingness to look through short-term volatility. The manager emphasizes fundamental analysis and multi-year themes rather than short-term catalysts.