Miska Repo @mick_repo: "2026 Performance YTD @mick_repo: -3.81% MSCI World..."

Italy

2026 Performance YTD @mick_repo: -3.81% MSCI World Index: -2.56% S&P 500: -4.31% Volatility remains elevated, and our portfolio has not been immune to the latest market reactions. Since the start of the month, we’ve experienced a drawdown of around 13%, similar to what we saw last year between March 18th and April 7th, 2025 (-13%), after which the portfolio rebounded strongly. This time, the move has been almost entirely driven by macro factors. In particular, rising oil and gas prices are feeding concerns around inflation and, consequently, the potential for higher interest rates. At the same time, there are growing worries about consumer sentiment and the possibility of economies slowing down or even entering a recession. Some of the companies in our portfolio are naturally sensitive to changes in interest rate expectations and risk of the slowing overall economy. Here are a few examples of some of the biggest positions in our portfolio, and what is my view on them. For example, the UK housebuilder $PSN.L (Persimmon) , currently our fourth-largest position, is down about 27% over the past 30 days. Higher interest rates and recession concerns lead markets to expect a more challenging environment for housebuilders. That said, the stock is still up around 2% since our entry roughly six months ago, and Persimmon is better positioned even in a tougher scenario compared to many of its competitors, thanks to its focus on affordable housing. Our largest position, $LGEN.L (Legal & General) , is down approximately 14% over the last month. We have been adding to the position, as its financial strength remains extremely solid. The company has also initiated a large share buyback program that will run throughout the year, which should help support the share price. Additionally, at current levels, the dividend yield is around 9%, both sustainable and growing, providing attractive income that can be reinvested back into the market. $VNA.DE (Vonovia SE) , our third-largest position, is down around 22% over the last 30 days. This is largely due to changing interest rate expectations. As a business with relatively high leverage due to its business model of being mainly a landlord, markets anticipate that higher refinancing costs could weigh on profitability. However, I believe the reaction has been somewhat overdone. The company is actively working on cost optimization, increasing the contribution from non-rental segments, and gradually reducing leverage. Overall, while the short-term performance is clearly impacted by macro-driven volatility, the underlying investment thesis for our core positions remains intact. Periods like this are uncomfortable, but they are also part of the normal market cycle. From a portfolio management perspective, I remain focused on discipline rather than reaction. We continue to reinvest income, selectively add to high-conviction positions, and look for opportunities where market pricing becomes disconnected from long-term fundamentals. Over time, these environments often create the best entry points - even if it doesn’t feel that way in the moment. Cheers, -Mick

Not investment advice. The author may have financial interests in the mentioned instruments.