Yoann Ignatiew (left) and Charles-Edouard Bilbault (right), co-fund managers of R-co Valor
Last days, we have gradually increased the fund equity net exposure, we are now at around 88,5%. With such a volatile stock markets, we are keeping a strong discipline and we are still looking for opportunities.
On healthcare sector, we have reduced Gilead Sciences in favor of Pfizer and BioMarin. As a reminder, Gilead, strong contributor to the fund’s performance, is one of the few stocks up, across all sectors. The company is currently testing a new drug called “Remdesivir” which could possibly cure COVID-19 patients. Pfizer and BioMarin have a growing product pipeline with multiple clinical candidates in development: Valrox designed for the treatment of Hemophilia for BioMarin and Ibrance,breast cancer drugs for Pfizer.
Simultaneously, we have reinforced industrial and bank/insurance sectors with existing portfolio positions such as Airbus and Manulife; but also, other stocks which appear attractive at current levels such as Capgemini or Google.
Central banks concomitantly deploy record sums to tackle coronavirus. In addition, governments have announced stimulus measures in order to reduce impact on their local economy. If everyone seems to act independently at first glance, a common will emerges. G7 meeting last week was looking for coordinating measure in order to improve national support.
In case of recovery, R-co Valor is well positioned with beta stock. In addition, we keep our Chinese exposure especially on technology sector which has held up better than its US counterpart, with more sustainable valuation levels.
Completed writing on 23 March 2020
