In March, the fund gained 0.3% vs. 3.3% for its benchmark, taking its performance since the start of the year to 11.7% (vs. 12.7%). It should be noted that the US indices are off to their best start to the year since Q1 2019, with respective performances in euros of +13% for the SP 500, +12% for the Nasdaq and +7% for the Russell 2000.

While the markets continued to rise, the month was characterised by a clear outperformance by the more cyclical stocks, mainly driven by the rebound in the indices and manufacturing activity and the reassuring words of J. Powell, who confirmed the path of rate cuts over 2024.

This sector rotation, which saw strong performances from sectors including Energy (+11% in euros), Materials & Utilities (+7%) and Financials & Industrials (+5%), penalised the fund's exposure to sectors and companies with strong pricing power. 

On the corporate front, we note the generally cautious tone taken by companies, despite solid results that beat expectations. Companies are reporting a 4% rise in profits this quarter, ahead of expectations and largely driven by the consumer discretionary (+34%), technology (+23%) and communication services (+45%) sectors.

In the portfolio, we note the disappointment over LuluLemon's annual growth forecasts, citing a slowdown in US consumer demand. Our position, which had already been trimmed before the publication, was again significantly reduced in view of this unusual slowdown in growth. The cybersecurity sector continued to underperform, despite Zscaler's generally satisfactory results.

On the other hand, advances in AI are continuing and taking shape, with Nvidia (+14%) unveiling its new range of products, and rumours of partnerships between Google (+9%) and Apple concerning the use of Gemini (Google) in certain Apple products.

In the fund, we sold our position in Equinix following the short report by Hindenburg, pending clarification from management. We have also increased our exposure to Idex and Keysight Technologies, which should benefit from the normalisation of the industrial cycle.