Quarterly Report December 2022


in December




in 2022



Portfolio and market

The Antaurus Europe Fund (AEF) was up +0.3% in December. This brought the December closing price to €307.16. The final annual return in 2022 is thus -1.2%. From its inception in 2006, the average annual net return is +7.2%.

In the fourth quarter, the AEF increased by +4.6%. This return was achieved with an average net exposure of 18%. This meant that the market risk of the AEF was substantially lower than the risk of an equity investment.

Performance and risk since start

Antaurus Europe Fund (NAV)

Performance AEF (%)
1 month +0,3
3 months +4,6
Year to date -1,19
2021 +10,68
2020 14,66
3 years (annualized) +7,83
5 years (annualized) +6,8
Since start (annualized) +7,15


Risk analysis 1 month 5 years Since start
Gross position (Long + Short in %) 144 134 131
Net long (Long - Short in %) 11 26 41
Beta adjusted net long (%) 15 25 36
Positive months (%) 56 61
Maximum drawdown (%) -8,8 -20,9
Best monthly return (%) 6,5 11,9
Worst monthly return (%) -6,0 -8,6
Volatility (%) 7,7 10,5
Sharpe ratio 0,80 0,66

Stock markets have had a difficult year. Globally, 2022 was the worst stock market year for equities since thefinancialcrisis in 2008. The broad European index Stoxx Europe 600 fell 12% and the Dutch AEX index fell 11% (including dividends). The prices of small and medium-sized companies fell much harder than the prices of large companies. For example, the index of medium-sized companies in Switzerland fell 28% (excluding dividends). The AEF's average net currency weighting was 19%, so the beta contributed negatively to earnings in 2022. Stock selection (alpha) contributed positively to the annual return.

In fact, it was a historically bad year for bonds. In the last hundred years, it was rare to see bonds in oneone year lost 15% of their value.


Over 50% of the long positions contributed positively to earnings. On balance, the long positions contributed negatively. The short positions contributed positively to earnings. On average, the short positions fell faster than the stock market and thus contributed to alpha.


The best performing long positions were Accelleron (turbo compressors), Holcim (building materials) and KPN (telecommunications). The worst-performing long position was Datwyler (medical applications).


Accelleron's share price rose 15%. Accelleron is a new investment in the AEF that entered the portfolio in the last quarter of 2022. It was until recently known as 'ABB Turbocharging'. In October, the company was spun off from ABB ('Asea Brown Boveri') and received its own stock market listing. Later in the quarterly report, we describe Accelleron's investment case in detail.


Holcim's share price rose 16% in 2022 (in Euro's and including dividends). The producer of building materials, including cement, achieved solid results in 2022. Holcim succeeded in absorbing sharply increased energy costs with price increases. Furthermore, the company is making strong progress in transforming its portfolio. In the third quarter, sales of the Brazilian and Indian cement operations were completed with revenues of more than $7 billion. At the same time, Holcim is making acquisitions of companies with products for roofing, insulation and specialized construction solutions. Due to the strong relative performance and weaker outlook for the construction sector, the AEF sold the position toward year-end. Since the purchase in March 2020, the value of a share of Holcim in Euro's increased by almost 50%.


KPN including dividends rose 10% in 2022. KPN surprised at the beginning of 2022 with the announcement to buy back 300 million euros worth of shares. The results achieved in 2022 were solid. KPN only had to reduce its 2023 profit forecast by a few percent for the sharp increase in energy and labor costs. Furthermore, KPN steadily continued to build a nationwide fiber optic network, to which half of the households in the Netherlands are already connected. The Dutch competition and market authority, the ACM, took a decision on tariffs for access to KPN's fiber network. This decision came about after KPN made a proposal to substantially reduce tariffs for access to the fiber network for other telecom providers. The fiber prices will be fixed for eight years. This assures KPN of a stable revenue stream for an extended period of time. Finally, KPN benefited from positive sentiment for defensive stocks.

With a 55% share price loss, Datwyler contributed significantly negatively to the Antaurus Europe Fund's annual result. Since the war in Ukraineïne, a number of key raw material costs have risen rapidly for Datwyler, while price increases have only been delayed by a delay of three à six months could be implemented. As a result, Datwyler had to announce in May that profits for 2022 will be about 15% lower compared to 2021, instead of the previous expectation of a profit increase. In addition, in April Datwyler announced the acquisition of U.S.-based QSR. Because Datwyler plans to make a number of investments in QSR's production process, operational results will only start to fully contribute to earnings by the end of 2023. Despite the sharp drop in the share price in 2022, the AEF has made a positive return on its position in Datwyler since the acquisition in mid-2019.


Investment Case: Accelleron

Accelleron is a new investment in the AEF that entered the portfolio in the last quarter of 2022. It was known as 'ABB Turbocharging' until recently. In October, the company was spun off from ABB ('AseaBrown Boveri') and received its own stock market listing. The stock is listed on the Swiss Stock Exchange and has a market capitalization of 1.8 billion euros.

Accelleron develops and manufactures turbochargers for large internal combustion engines, producing power in excess of 2,000 hp (and in some cases up to 100,000 hp). The two end markets Accelleron supplies are the marine and energy sectors. In the case of the energy sector, these are mainly products and services for power generators that serve as backup or are used to provide power in remote locations.


A turbocharger provides efficientëner combustion: more power, less fuel consumption and lower carbon emissions. Experts expect marine vessel engines and power plants to switch to green hydrogen or biofuels. These fuels will be more expensive than current fuels. As a result, we expect products and services that increase the efficiency ofëntion of engines will actually become more relevant in the energy transition.


A turbocharger is designed to run many hours and to last a long time. A turbocharger can run as much as'about 25 years of operation. To keep reliability high, a service should be performed every two to five years. In practice, this is always adhered to. If a ship could not sail because of a defective turbocharger, the costs for shutting down a ship would quickly run into tens of thousands of euros.'s per day. Moreover, most insurance companies require that the turbocharger be maintained according to the recommended service intervals.


Accelleron thus generates'about 75% of its sales and 90% of its annual profits from performing these maintenance services. Accelleron has a unique network of so'about a hundred service offices around the world, so customers can always be helped quickly. The recurring nature of this revenue is something that is very appealing to us.


In addition, Accelleron operates as a market leader in a consolidated market. Accelleron has market shares between 40% and 80% in the segments in which it operates. The top three players together account for 80% à 90% of the market. We consider the likelihood of new entrants to be small. Accelleron invests more money annually in research and development than the entire annual sales of a number of smaller competitors. Moreover, the development of a turbocharger only pays for itself after about ten years. In addition, a new entrant would face high fixed costs for operating a global service network.



AEF has already made over 15% return on this new investment at the current share price. Nevertheless, we still see significant potential for further price appreciation. We think that a lot of ABB shareholders have rudely sold their newly acquired Accelleron shares since the start of the listing in October. In fact, about 20% of ABB shares are held in passive ETF funds. ABB is a company with a market capitalization of over 50 billion euros. Very likely, these ETF funds are not allowed to hold an investment in a "small-cap" stock like Accelleron. Moreover, ABB shareholders received Accelleron shares worth one-twentieth(5%) of their ABB position. Often fund managers decide to sell such small positions instead of doing a lot of homework on them. Finally, ABB was formed in 1988 from a merger between Sweden's ASEA and Switzerland's Brown, Boveri & Cie. Many Swedish ABB investors may not have the mandate to invest in Swiss companies as well, so it seems that this group of ABB shareholders also sold their Accelleron shares. 

Strategy and outlook

European stock markets have had a strong fourth quarter. Towering inflation figures are beginning to ease, driven mainly by a drop in energy prices. This is easing pressure on consumer and business income. It has also increased investor confidence that the end of interest rate hikes is in sight. However, central bankers at the Fed and the ECB signaled in December that they would continue rate hikes for the time being to avoid prolonging inflation.

The global economy has slowed in recent quarters. Consumers are seeing their purchasing power eroded by high inflation. In addition, the Chinese economy was weighed down by strict corona measures. Last month, China implemented a major relaxation of its corona policy which, after the current wave of contagion, is expected to revive the Chinese economy. Economists estimate that economic growth will be around zero this year in both the United States and Europe.


Global monetary policy has completely turned over the past year. For years, policy interest rates were around zero (or even negative in Europe). Last year, however, that generous monetary policy came to an end. The U.S. central bank (Fed) raised policy rates seven times through 2022, from 0.25% to 4.5%. This rate of increases has been higher since the '70s. Also, the Fed is currently reducing its bond portfolio by 95 billion per month. The European Central Bank (ECB) did not begin raising interest rates until the second half of the year. Eventually, the ECB raised interest rates in four steps from 0% to 2.5%. Both the Fed and the ECB have indicated they will continue to raise interest rates for the time being, as they see the risk of persistently high inflation as greater than the economic softening that higher interest rates bring.


In contrast, in the face of tightening central bank policies, many European governments have put together massive support packages to compensate consumers for increased energy costs. This props up consumers' purchasing power, limiting demand slumps. This policy, however, runs counter to what central banks are trying to achieve with their monetary policy (namely, demand slack in order to curb inflation). European politicians, however, have chosen the popular option. This risks keeping inflation stubbornly high, which may ultimately cause consumers to lose purchasing power.


Dhe weakening economy has caused demand for raw materials and transportation to decline. Prices for steel, aluminum and copper, for example, have fallen sharply. Many companies will therefore start to benefit from lower purchase prices as of today. This is positive for the development of gross profits. We also see that prices for intercontinental transport have fallen by more than three quarters over the past six months. However, many companies are warning that labor costs will rise more sharply in 2023 than in 2022. Moreover, companies are more cautious about raising prices in a weak economy. All in all, therefore, our current expectation is that the prospects for earnings growth at many companies in 2023 will be limited.

The financialële markets have had to adapt to the beëtermination of the extreme monetary stimulus measures of recent years. We consider the prospects for earnings growth to be limited for many companies given the weak economic outlook and rising labor costs. With price declines in 2022, equities appear reasonably valued. AEF's current net long weighting of 10% reflects our cautious stance.


Performance and risk since start

Top 3 positions Weight
D'Ieteren 11%
Accelleron 10,8%
KPN 7,3%
Utilities company 6,3%
Business services company 5,6%
Industrials company 5,1%

About Antaurus


NAV (€) 307.16
Fund size AuM (€m) 359
ISIN code EN 0000 686848


Maximum Gross 150%
Net long range -50% to +75%

Related parties

Depositary Caceis
Custodian Caceis
Administrator Bolder Fund Services
Auditor Mazars

Fund characteristics

Style Long/Short Equities
Geography Europe
Inception October 2006
Base currency Euro
Additions Monthly
Redemptions Monthly

Free structure

Management Fee 1.8%, p.a.
Performance Fee 20%, quarterly
High Watermark Indefinite


This document has been prepared by Antaurus Capital Management B.V. solely for the information of the person to whom it has been delivered. The distribution of this document and the offer, sale and delivery of units (Units) in the fund (Fund) in certain jurisdictions may be restricted by law. This document does not constitute an offer for, or an invitation to subscribe to or purchase, any Units in any jurisdiction to any person to whom it is unlawful to make such offer or invitation in such jurisdiction. Persons into whose possession this document comes are required to inform themselves about and to observe any such restrictions. The information herein is for general guidance only and it is the responsibility of any person in possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdiction. This information is not intended to provide and should not be relied upon upon for accounting, legal or tax advice or investment recommendations. You should consult your tax, legal, accounting or other advisors about the issues discussed herein. Material terms of the fund are subject to change. Any prospective investor will be provided with a copy of the prospectus and an opportunity to review the documentation. Prospective investors should review the prospectus, including the risk factors, before making a decision to invest. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information or opinions contained in this document by any of Antaurus Capital Management, its employees or affiliates and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions, and nothing contained herein shall be relied upon as a promise or representation whether as to past or future performance. This is neither an offer to sell nor a solicitation of any offer to buy any securities in any fund managed by us. Past performance of a fund is no guarantee as to its performance in the future.

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