Venture: Portfolio Update

Issue 54

It has been a strong month for ByteTree Venture, with most stocks performing well. The modest recovery in AIM stocks is welcome, which have been sliding since the summer. Looking at the UK market, where 20 of the 29 current holdings reside, there has been a huge divergence since the 2021 peak. The FTSE 250 and small caps have lagged the FTSE 100 significantly, and the AIM 100 even more so. There is plenty of catch-up yet to come.

UK Stockmarket Indices

Source: Bloomberg

This is evident in the German market as well, where there are three holdings in Venture. European small and mid-cap stocks also offer compelling value in Europe, and our job is to find them.

German Market Indices

Source: Bloomberg

There are also several turnarounds and cyclical stocks where we believe we have an advantage over the analysts as they follow valuation methods that focus on the current situation at times when change is inevitable. With Europe out of favour, there continues to be rich pickings.