November VQF Financial Services Standards Association

Transcription

1 November VQF Financial Services Standards Association This document is for information purposes only and does not constitute an offer of shares in RBR European Long Short Funds. It is the responsibility of any person in possession of this document to inform themselves of all applicable laws and regulations of the countries of their nationalities, residence, ordinary residence or domicile. Further information is set out on the last page of this document.

2 Agenda Introduction 1 Case Studies 2 Performance 3 Conclusion 4 2

3 Most fund managers cannot beat the market A blindfolded monkey throwing darts at a newspaper s financial pages could select a portfolio that would do just as well as one carefully selected by experts. Burton Malkiel, A Random Walk Down Wall Street Source: A Case for Index Fund Portfolios, RICHARD FERRI & ALEX BENKE 3

4 How do we achieve outperformance? 40 years of combined investment experience More than 400 company meetings every year Thorough research and analysis Acting when price and value diverge 4

5 Agenda Introduction 1 Case Studies 2 Performance 3 Conclusion 4 5

6 Jazztel Transformation Strengthens Competitive Position Business description Jazztel PLC is a telecom operator in Spain with ~12% market share in ADSL Main financials and multiples Financials (EUR) 12/13E 12/15E Revenue (M) 1,034 1,267 Long Focus on retail broadband and mobile services 4,500 km of fiber network in Spain Retail makes up 80% of sales and wholesale 20% EBITDA (M) EPS Adjusted Ratio Analysis Price Earnings 32.4x 20.4x EV to EBITDA 11.8x 7.7x 6

7 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Jazztel Transformation Strengthens Competitive Position Investment Rationale Best price-quality product in Spain Integrated strategy through bundled offers Substantial growth from FTTH deployment Long Upside: +50% based on DCF Share Price Development Price versus Peers & Benchmark (Normalized)) JAZ SM Equity Peer Index IBEX 7

8 Mediaset Contrarian Play with Deep Value Business description Mediaset SpA operates television broadcasting with ~35% market share in Italy and ~45% market share in Spain Main financials and multiples Financials (EUR) 12/13E 12/15E Revenue (M) 3,441 3,756 Long Founded in the 1970s by former Italian prime minister Silvio Berlusconi EBITDA (M) 809 1,083 EPS Adjusted Ratio Analysis The main channels are Canale 5, Italia 1, Retequattro and Telecinco Price Earnings 118.9x 18.6x EV to EBITDA 7.9x 5.9x 8

9 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Mediaset Contrarian Play with Deep Value Investment Rationale The shares trade with Berlusconi stigma on top of a PIIGS discount Mediaset is set to swing from losses into net profits in 2013 The market is undervaluing the free cash flow: there is optionality in the Pay-TV business Upside: +30% based on 9% 2014 FCF yield Long Share Price Development Price versus Peers & Benchmark (Normalized)) MS IM Equity Peer Index FTSEMIB 9

10 Swatch Growth Acceleration Ahead Long Business description Swatch Group AG manufactures watches and components Leading brands portfolio including Breguet, Omega, Longines, Rado, Tissot, Certina and Swatch Main financials and multiples Financials (CHF) 12/13E 12/15E Revenue (M) 8,663 10,335 EBITDA (M) 2,435 3,064 EPS Adjusted % of sales are from watches and jewelry and 25% from the production of movements Asia represents 53% of sales, Europe 37% and Americas 8% Ratio Analysis Price Earnings 18.8x 15.0x EV to EBITDA 12.4x 9.9x 10

11 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Swatch Growth Acceleration Ahead Investment Rationale Short-term headwinds from slowdown in China and strong CHF offer an attractive entry opportunity The growth story remains intact as most of Swatch s brands outperform rivals Dominates the market of mechanical watches of < CHF 5,000 Upside: +35% based on 20x cash PER 2015 Long Share Price Development Price versus Peers & Benchmark (Normalized)) UHR VX Equity Peer Index SMI 11

12 ThyssenKrupp Restructuring Unlocks Value Business description ThyssenKrupp AG is Germany s largest steel maker and manufacturer of industrial components Main financials and multiples Financials (EUR) 9/13E 9/15E Revenue (M) 37,076 39,838 Long Conglomerate with businesses in steel, car parts, elevators, escalators, machine tools and real estate EBITDA (M) 1,858 2,862 EPS Adjusted Ratio Analysis Price Earnings neg 11.2x New management has carte blanche EV to EBITDA 7.6x 4.9x 12

13 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 ThyssenKrupp Restructuring Unlocks Value Investment Rationale Top management changes serve as a catalyst Recently negotiated a waiver from banks for its covenants Planned disposals will make the company asset light Upside: +35% based on sum-of-the-parts valuation Long Share Price Development Price versus Peers & Benchmark (Normalized)) TKA GY Equity Peer Index DAX 13

14 Agenda Introduction 1 Case Studies 2 Performance 3 Conclusion 4 14

15 The long book has outperformed MSCI Europe by 21% p.a. RBR European Long Short (LUX): Long Book Outperformance Analysis vs Benchmark (per Oct ) LONG Period RBR European L/S MSCI Europe ex-uk vs. MSCI Europe ex-uk Actual Return return outperformance % 10.6% 27.7% % 24.6% 17.3% % 18.5% 20.8% % 3.0% -1.7% % -44.4% 17.3% % 24.6% 50.9% % 5.9% 19.9% % -14.9% 0.0% % 15.8% 19.5% % 18.9% 12.4% Performance* 573.7% 44.6% 529.0% p.a. 21.4% 3.8% 20.6% 15

16 RBR is a leader in long term performance (5Yr) Name SNAPSHOT OF TOP 10 FUNDS: 5 YEAR ANNUALIZED RETURN Tot Ret 5Y Ann RBR EUROPEAN LONG SHORT-CHF 23.0 RBR EUROPEAN LONG SHRT-P CHF 18.0 SW MITCHELL SMALL CAP EURO-A 16.6 SATOR PUBLIC EQUITY VALUE-A 14.9 ZADIG FUND-A 14.2 OEI MAC INC-USD 13.7 ENNISMORE EUROPEAN SML CO ANTARES EUROPEAN FUND LTD EURONOVA SMALLER COM-C1 EUR 12.9 EV SMALLER COMPANIES FUND

17 RBR is a leader in long term performance (3Yr) 17

18 Agenda Introduction 1 Case Studies 2 Performance 3 Conclusion 4 18

19 Conclusion The more I practice, the luckier I get. Gary Player 19