In line with what we have observed in recent months, the fund is underperforming its benchmark index in a context where investors are again worried about the economy’s resilience, and about possible rate cuts later in the year.
The underperformance is therefore not due to stock picking, but rather to the fund’s positions in SMEs. This is because currently the index’s ten largest weightings are not eligible for PEA-PME funds.
There were numerous outstanding earnings announcements:
• ESKER had record order intake in Q4 and is doing especially well in sales.
• FOUNTAINE PAJOT forecasts growth of 10% in 2024.
• SIDETRADE promises double-digit growth in 2024, with a significantly improved profit margin.
• ID LOGISTICS ended the year with impressive organic growth of +11.9%.
• SWORD and WAVESTONE are maintaining consistently high levels of growth despite an uneven environment. In the same sector, AUBAY is now aiming for the high end of its margin range, thanks to a Q4 that was more resistant than expected.
• EUROBIO-SCIENTIFIC announced sales revenue which was much better than expected.
• SEB has raised its profitable growth target, underpinned by higher-than-forecast organic growth.
• SES IMAGOTAG achieved its objectives, thanks to an excellent Q4.

On the downside, THERMADOR, OENEO, LFDE and INFOTEL published organic growth that came in under expectations. We believe this is the low point for these companies. By contrast, ATEME again cut its margin forecast, despite solid growth. While the share valuation is very low, management needs to wake up to investor demand for profitability.