A time to buy Europe?

[UncleEbenezer]

Half-year report on a former star IT, now fallen on rather hard times. JEO, now called the European Opportunities trust: https://www.investegate.co.uk/article.a ... 411153928Q

Not happy reading, and I note that a rather significant discount has opened. Could this be a buying opportunity, or is this becoming a long-term loser?

Turning to theaic Europe sector, I see there are actually quite a few Europe trusts sitting at discounts in the 10% ballpark. Is this a sector that feels less bubbly and perhaps more solid than US, UK or China?

[OllyDrod]

Half-year report on a former star IT, now fallen on rather hard times. JEO, now called the European Opportunities trust: https://www.investegate.co.uk/article.a ... 411153928Q

Not happy reading, and I note that a rather significant discount has opened. Could this be a buying opportunity, or is this becoming a long-term loser?

Turning to theaic Europe sector, I see there are actually quite a few Europe trusts sitting at discounts in the 10% ballpark. Is this a sector that feels less bubbly and perhaps more solid than US, UK or China?

The discount is likely (at least in part) due to sentiment souring following the Wirecard scandal, where JEO had a major holding. Might even have been their biggest single position. If I remember correctly, JEO managed to get out before Wirecard went bust - but still took a considerable hit. It's naturally taken some of the shine off Darwall's reputation and his otherwise excellent track record. The fact that he's recently set up his own Management company is also a bit of a risk for me - he did very well at Jupiter for years, but will he have access to the same quality and volume of research with his own Devon Equity Management? Time will tell. The mess the EU's currently making of the vaccine roll-out will no doubt also be depressing sentiment (although obviously that's not specific to this IT).

Some nice holdings there in my opinion - lots of quality growth. Would imagine it'll do well over the medium-term (at least until the next Eurozone crisis - whatever shape that takes!)
- OllyDrod

[OllyDrod]

Half-year report on a former star IT, now fallen on rather hard times. JEO, now called the European Opportunities trust: https://www.investegate.co.uk/article.a ... 411153928Q

Not happy reading, and I note that a rather significant discount has opened. Could this be a buying opportunity, or is this becoming a long-term loser?

Turning to theaic Europe sector, I see there are actually quite a few Europe trusts sitting at discounts in the 10% ballpark. Is this a sector that feels less bubbly and perhaps more solid than US, UK or China?

Coincidentally, just found an article on European Opportunities in last week's edition of the Investor's Chronicle (which I hadn't got round to reading). It may be on their website. The gist was that one mistake doesn't mean Darwall's suddenly lost the plot; the board have taken steps to limit his position size (10% - Wirecard was in excess of 17% at one point); and that there's always a risk in running concentrated portfolios like he does. They tip European Opportunities as a 'buy'.

Looking through my old transactions, I managed to pick up JEO (as was) in 2013 at 388p and sold out in 2019 at 831p. Would need to do some more digging but you've piqued my interest - thanks!
- OllyDrod

[scotia]

JEO is not one of my European choices.
The European fund that has caught my attention is Premier Miton European Opportunities. It seems to be substantially out performing my other European OEICS and ITs. Looking at the total returns (rounded to 1%) over 1 and 5 years (data from HL) for the European funds we (myself and wife) currently hold we have (in no particular order)


I think you may have worked out that I believe in diversification

And for comparison JEO, which I don't hold, is minus 14% (1 yr tot ret) and plus 29% (5yr tot ret)

[dundas666]

Another you might want to consider is Montanaro European Smaller Companies.

1,3,5,10 year total returns are 63%, 106%, 216%, 306%

[richfool]

In the European sector, I hold:
BGEU for growth
EAT for income, and
BRGE for both growth and some income.