«Monocle Fund is now ranked best fund in the Quantalys Flexible Prudent Fund category.»

Jean-Paul Raymond, founding partner of Quantalys, Quantalys Inside - December 1, 2020








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Monocle Fund Part A

Etoile Quantalys
Notation Quantalys

April 09, 2020
YTD :+1.35%

Dear Investors,

As of April 9, Monocle (A share) is at +1.35% over 2021.

2020: +6.44%
2019: +6.09%
2018: +0.11%
2017: -1.25%
2016: +6.91%

The fund has been rising since the beginning of April, driven by Petrofac which recovered +35% over the month to return to its February level. This rise is partly due to the announcement by the company on April 7 of the refinancing for one year of its $700M revolver credit. However, we are mainly waiting for the publication of the annual accounts (scheduled for "mid-April") with - we strongly hope - a progress on the litigation with the Serious Fraud Office. We believe indeed that, as the Volkswagen example shows that everyone has now forgotten Dieselgate in 2015, there will be a post-SFO for Petrofac. On the VW example, the stock is now worth three times what it was at the time.

In the markets, the euphoria continues in the US - perhaps fueled by the stimulus checks - and this is pulling the rest of the markets (except China). Our view remains the same: these increasingly high multiples on uncertain future results (which will certainly be shaved by the tax hikes the Biden administration wants to implement) make the game increasingly dangerous.

Q1 releases have just begun (LVMH last night with significant growth but noting that China now accounts for half of sales). We will see in the coming weeks how this plays out and especially what companies are planning for the rest of the year - if they take the risk: several have already announced that with the pandemic, the situation is too uncertain to give projections.

Have a good week,


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