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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Lansdowne Partners European Fund 2024 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Lansdowne Partners European Fund)

Primary Source Intelligence • Q3 2024 Letter Analysis

Lansdowne Partners European Fund Quarterly Analysis

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

Fund Returns

QTD+1.12%

Digest Analysis

Quick Take

"Lansdowne European Fund underperformed in Q3 with selective positioning across European mid-large caps. Added Ferrovial for US toll road exposure with pricing power upside."

Executive Summary

Lansdowne European Fund returned 1.12% in Q3 2024, underperforming the MSCI Europe benchmark's 2.35% return. The fund maintains a concentrated approach with 20-30 holdings focused on mid to large cap European companies. Key portfolio additions included Ferrovial, a first mover in the US managed lane market with significant pricing power potential through tariffs trading at discounts to willingness-to-pay. The fund sees structural improvements in UK logistics through Segro, benefiting from reduced speculative construction and stabilizing demand dynamics. Position adjustments included taking profits in Tele2 after strong performance and reducing Novo Nordisk ahead of pipeline readouts despite conviction in the GLP-1 obesity story. The manager trimmed Leonardo due to prolonged aerospace supply chain disruption at Boeing. Looking forward, the fund expects recovery in renovation and refurbishment spending to benefit construction materials companies like Sika in 2025. The portfolio remains positioned for structural growth themes while maintaining selectivity given mixed market conditions across European sectors.

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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

72%

CautiousHigh

High Conviction (72%)

High conviction evidenced by concentrated 20-30 position portfolio with detailed fundamental analysis and specific position sizing decisions. Manager provides clear rationale for additions like Ferrovial and trims like Tele2, with explicit catalyst identification and valuation frameworks. The specificity of analysis and willingness to make meaningful position changes demonstrates strong conviction in their research process.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager shows cautious optimism with selective opportunities identified. They see structural improvements in specific sectors like UK logistics and expect recovery in construction materials by 2025, but also acknowledge volume weakness in automotive and aerospace supply chain disruptions.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

Portfolio positioning shows measured risk appetite with selective additions like Ferrovial while taking profits in strong performers like Tele2. The fund maintains concentrated exposure but adjusts positions based on changing fundamentals and risk-reward profiles.

Capital Deployment

5%

De-riskingDeploying

De-risking (5%)

Net neutral deployment activity with one new position added (Ferrovial) while taking profits in others (Tele2) and adjusting existing holdings (Novo Nordisk, Leonardo). No indication of significant cash level changes, suggesting rotation rather than net deployment or de-risking.

Forward Guidance

30%

CautiousExpansionary

Cautious (30%)

Forward guidance is constructive with specific catalysts identified including renovation spending recovery in 2025 and improving UK logistics dynamics. The manager expresses confidence in structural themes while maintaining selectivity for better entry points.

Language Signal

20%

BearishBullish

Bearish (20%)

Language balance leans slightly positive with terms like 'attractively valued,' 'structural growth,' 'improving structurally,' and 'significant upside optionality' but tempered by cautious language around volume weakness, disruption, and the need for selectivity.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

Moderate risk perception with specific concerns identified including automotive volume weakness, aerospace supply chain disruption, and pipeline concentration risks in pharmaceuticals. Risks are named and discussed but not characterized as systemic or extreme threats.

Opportunity Density

60%

ScarceAbundant

Selective (60%)

Selective opportunity environment with the manager identifying specific attractive areas like US toll roads, UK logistics, and construction materials recovery while noting challenges in other sectors. The concentrated portfolio approach suggests opportunities exist but require careful selection.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

Multi-year investment horizon evidenced by focus on structural themes like logistics demand-supply dynamics, renovation spending recovery expected in 2025 and beyond, and long-term competitive advantages. The fund structure and fundamental analysis approach suggests patience for thesis realization over 2-5 year periods.