Eurozone equity markets continued to rebound in March 2024. Good macroeconomic data (notably PMI) supported a market that had already been buoyant for several months in anticipation of a cycle of rate cuts by central banks. In this 'risk on' phase, cyclical and discounted stocks took centre stage during the month: the value style significantly outperformed the growth style, by around 400bp. Against this backdrop, which was rather unfavourable to our management style, the fund gained +2.4% compared with +4.4% for its benchmark index. Over the first quarter, Amplegest Pricing Power gained 12.1% compared with 10.4%.

During the month, the fund's sector allocation was the main driver of relative underperformance: concentrated on stocks with strong pricing power, the fund is largely under-exposed to the banking, property, oil, insurance and utilities sectors. Technology stocks had mixed fortunes: BESI lost 15% on fears of a delay in the adoption of their Hybrid Bonding technology, while SESA published results that fell short of expectations. Luxury goods were negatively impacted by the profit warning issued by Kering (not included in the fund), after an excellent recent performance. Conversely, industrials were buoyed by the pairing of Safran and Airbus in the aerospace sector. Finally, healthcare stocks were buoyed by the excellent performance of UCB, whose sales of psoriasis treatment seem to be off to a strong start.

During the period, we sold BioMérieux, whose annual results have led to a downward revision of profitability expectations for 2024. Schneider, Safran and Infineon were reduced. We initiated a position in D'Ieteren, a Belgian company and majority shareholder in Carglass (Belron group), whose pricing power is proving eloquent quarter after quarter. Its size in the auto glass replacement sector, its relationships with insurance companies, its recognised customer service and the strength of its brands give it strong pricing power and a solid competitive advantage. We strengthened Brunello Cuccinelli on weakness, as well as BESI.