Fund performance came to –8.62% (vs. –9.27%). October was another very difficult month for markets, especially small caps.

On the whole, earnings announcements for Q3 got off to a good start:
- We have raised three price targets: VIRBAC, GTT and SWORD.
- Earnings came in better than expected from FOUNTAINE PAJOT, FOCUS HOME, VOYAGEURS DU MONDE, SEB, WAVESTONE and SECHE ENVIRONNEMENT.
- The improved sales trends of SIDETRADE and ESKER (order intake up sharply despite unfavourable base effects) also exceeded expectations. As these companies invoice on a subscription basis, turnover is easy to forecast and thus of little importance in the short term.
- LDLC and INVIBES ADVERTISING both enjoyed renewed growth.
- Earnings for ID LOGISTICS, LUMIBIRD, XFAB and SES IMAGOTAG were in line with expectations.
- Although INFOTEL experienced one of its occasional slowdowns in Q3, our medium-term scenario is unchanged. Moreover, management maintains its profitability forecast.
- Disappointments came from EKINOPS, WORLDLINE and XILAM. We added to our positions in EKINOPS and WORLDLINE after their share prices corrected, but we sold XILAM because of a paradigm change in the animation sector. Before earnings publications these three positions accounted for 5% of AUM.
- Less serious, LECTRA announced a profit warning but reassured investors of its ability to remain profitable in a hostile environment. As a result, shares rebounded significantly.

The fund is fully invested and continues to favour companies with low levels of debt.