JPMorgan European Discovery Trust plc (LON:JEDT) has announced its November commentary.
Month in review
As of 30/11/2024
- The trust underperformed its benchmark in November. However, JEDT’s 1 year cumulative performance is 12.71% versus 5.55% for JEDT’s benchmark index, MSCI Europe ex UK Small Cap Index (Net).
- Positive contributors to relative returns included stock selection in travel & leisure and industrial transportation.
- Detractors included stock selection in construction & materials and stock selection and an overweight position in electronic & electrical equipment.
- At the stock level, an overweight position in Do & Co, an Austrian airline and live-event caterer, contributed after it reported very strong results as the company continued to gain market share.
- An overweight position in Saipem, an Italian oil services company, also contributed to relative returns. Its shares continued to move higher in November following a strong quarterly update at the end of October, at which point management increased earnings guidance, prompting upgrades to consensus estimates. Saipem also announced a sizeable contract win in Indonesia towards the end of the month, providing increased visibility on outer-year earnings forecasts.
- Conversely, an overweight position in CTS Eventim, a German-headquartered live-event online ticket seller, detracted from relative returns. The company announced an unexpected new capital expenditure (capex) outlay. However, the management team later confirmed that the actual capex is lower than investors initially thought, and the return on investment is high, so the share price has started to recover.
- An overweight position in Nexans, a French high-voltage cable manufacturer, also underperformed after a very strong run due to a combination of French political instability and uncertainty around the impact that the US election will have on the outlook for renewable energy and electrification.
