Plenisfer Annual Letter 2023
In Short
1.2023 performance: positive contribution from all Strategies
The performance of Destination Value Total Return in 2023 was 9.4% (Class I in USD) - +6.25% for both the Euro and Euro-hedged classes - with a volatility of 9.7%.
The average weight of the equity component in 2023 was 40%, corporate bonds 30%, and real assets 25%.
All strategies contributed positively to performance, respectively: Income +3.4%, Macro +3%, Compounders +2.8%, Special Situations +2.5%, Alternative Risk Premia +0.9%. The only component that contributed negatively was hedging (Hedge -2.6%), because in the first part of the year we maintained short positions in the stock market. We were worried about an economic slowdown and market correction that did not occur.
The "Macro" strategy benefited most from uranium (+3.4%) and other energy positions, while commodities and our position on the “steepening” of the yield curve contributed negatively. The uranium bull market is set to last for a long time. After years of market surplus, supplies have been depleted, and the market has entered a deficit. Utilities have been forced to enter the spot market to buy the material. The previous surplus was in fact due to the long phase of converting the material from military to civilian use.
