FUND PERFORMANCE

DIGITAL STARS EUROPE

Inception date: 11/13/98

DIGITAL STARS EUROPE EX UK

Inception date: 06/30/06

DIGITAL STARS EUROPE SMALLER COMPANIES

Inception date: 12/16/16

DIGITAL STARS US EQUITIES

Inception date: 10/16/17

DIGITAL STARS EUROZONE

Inception date: 10/01/18
 

DIGITAL STARS EUROPE

Monthly update August 2020The stock market "Recovery" initiated in March was further extended in August. The American indexes beat their historical record again, while in Europe, stock markets caught up nearly 60% of the sharp decline observed between February and March. This dichotomy between the real economy and the financial markets may seem surprising. The fall in GDP in 2020 will indeed be spectacular and unprecedented since the post-war period. However, the coordinated action of central banks to maintain low rates on a lasting basis, coupled with massive state budget support, has made it possible to compensate for the supposedly temporary loss of profits by companies. The risk premium of equities remains attractive. According to the consensus of analysts, EPS 2021 in Europe will be equivalent to 88% of EPS 2019, being the last financial year not affected by the health crisis. Based on this estimate, the 2021 EPS is 16x and the equity risk premium is 6.6%. It would then take an additional 20% increase in the European market to converge towards its historical average of 5%. The Digital funds ended August strongly up and significantly outperformed their benchmark indices. Cyclical stocks: Industrials and Consumer Discretionary led performance, as did Technology, whilst defensive stocks underperformed. The stock-picking effect was also very positive, particularly in the healthcare sector (Bachem, Shop Apotheke, ALK-abello...). Sector niches that are well represented in the portfolio stand out: renewable energies - smart grid (Alfen, Ceres Power, NEL, Scatec Solar, Neoen...), DIY-gardening (Hornbach, Husqvarna) and gaming (GVC Holding, Kindred, Betsson, Evolution Gaming). For the second month in a row we note significantly (50%) more upward revisions of estimated 2020 earnings than downward revisions for the stocks composing the funds. The monthly performance of Digital Stars Europe Acc is +5.4%, compared with +2.9% for the MSCI Europe NR.

Read the monthly report in PDF format

OBJECTIVES

The objective of the sub-fund is to realise long-term capital gains and outperform the European markets as a whole by using a sophisticated quantitative model, conceived by Jacques Chahine, which makes it possible to identify "star" performers.

FUND PROFILE

An extremely diversified portfolio, invested in all market capitalisations in a purely quantitative style. Its investment universe comprises around 1,700 stocks from the European Union, United Kingdom, Switzerland and Norway, whose capitalisation exceeds 100 million euros. The sub-fund may invest up to 50% of its net assets in large cap stocks of the DJ Stoxx 50.

DIGITAL STARS EUROPE EX-UK

Monthly update August 2020
The stock market "Recovery" initiated in March was further extended in August. The American indexes beat their historical record again, while in Europe, stock markets caught up nearly 60% of the sharp decline observed between February and March. This dichotomy between the real economy and the financial markets may seem surprising. The fall in GDP in 2020 will indeed be spectacular and unprecedented since the post-war period. However, the coordinated action of central banks to maintain low rates on a lasting basis, coupled with massive state budget support, has made it possible to compensate for the supposedly temporary loss of profits by companies. The risk premium of equities remains attractive. According to the consensus of analysts, EPS 2021 in Europe will be equivalent to 88% of EPS 2019, being the last financial year not affected by the health crisis. Based on this estimate, the 2021 EPS is 16x and the equity risk premium is 6.6%. It would then take an additional 20% increase in the European market to converge towards its historical average of 5%. The Digital funds ended August strongly up and significantly outperformed their benchmark indices. Cyclical stocks: Industrials and Consumer Discretionary led performance, as did Technology, whilst defensive stocks underperformed. The stock picking effect was also very positive, particularly in the healthcare sector (Bachem, Shop Apotheke, ALK-abello...). Sector niches that are well represented in the portfolio stand out: renewable energies - smart grid (Alfen, NEL, Scatec Solar, Neoen...), DIY-gardening (Hornbach, Husqvarna) and gaming (Kindred, Betsson, Evolution Gaming). For the second month in a row we note significantly (50%) more upward revisions of estimated 2020 earnings than downward revisions for the stocks composing the funds. Digital Stars Europe Ex-UK Acc ended August at +4.5% compared with +3.1% for the MSCI Europe ex UK NR.

Read the monthly report in PDF format

OBJECTIVES

The objective of the sub-fund is to realise long-term capital gains and outperform the European markets (excluding United-Kingdom) by using a sophisticated quantitative model, conceived by Jacques Chahine, which makes it possible to identify "star" performers.

FUND PROFILE

An extremely diversified portfolio, invested in all market capitalisations in a purely quantitative style. Its investment universe comprises around 1,300 stocks from the European Union, Switzerland and Norway but excluding the United Kingdom,, whose capitalisation exceeds 100 million euros. The sub-fund may invest up to 50% of its net assets in large cap stocks of the Euro Stoxx 50.

DIGITAL STARS EUROPE SMALLER COMPANIES

Monthly update August 2020The stock market "Recovery" initiated in March was further extended in August. The American indexes beat their historical record again, while in Europe, stock markets caught up nearly 60% of the sharp decline observed between February and March. This dichotomy between the real economy and the financial markets may seem surprising. The fall in GDP in 2020 will indeed be spectacular and unprecedented since the post-war period. However, the coordinated action of central banks to maintain low rates on a lasting basis, coupled with massive state budget support, has made it possible to compensate for the supposedly temporary loss of profits by companies. The risk premium of equities remains attractive. According to the consensus of analysts, EPS 2021 in Europe will be equivalent to 88% of EPS 2019, being the last financial year not affected by the health crisis. Based on this estimate, the 2021 EPS is 16x and the equity risk premium is 6.6%. It would then take an additional 20% increase in the European market to converge towards its historical average of 5%. August was very favourable for small stocks: Digital Stars Europe Smaller Companies Acc continued to rise and finished the month at +7.7%, even outperforming the MSCI Europe Small Cap NR which finished at +5.7%. The fund's sector positioning was good, particularly the overweight in consumer discretionary and the underweight in health care and real estate. But the stocks that really made the difference were in the renewable energy/smart-grid theme (Alfen, Voltalia, NEL, Eolus Vind) and in the IT sector (Crayon Group, Sinch, GFT Technologies, SeSa).

Read the monthly report in PDF

OBJECTIVES

The objective of the sub-fund is to realise long-term capital gains and outperform the European Small Cap markets by using a sophisticated quantitative model, conceived by Jacques Chahine, which makes it possible to identify "star" performers.

FUND PROFILE

An extremely diversified portfolio, invested in small capitalisations in a purely quantitative style. Its investment universe comprises around 1,500 stocks from the European Union, United Kingdom, Switzerland and Norway, whose capitalisation exceeds 50 million eurosand is equal or less than the company having the greatest Market capitalization in the MSCI Europe Small Cap Index.

DIGITAL STARS US EQUITIES

Monthly update August 2020The stock market "Recovery" initiated in March was further extended in August. The American indexes beat their historical record again, while in Europe, stock markets caught up nearly 60% of the sharp decline observed between February and March. This dichotomy between the real economy and the financial markets may seem surprising. The fall in GDP in 2020 will indeed be spectacular and unprecedented since the post-war period. However, the coordinated action of central banks to maintain low rates on a lasting basis, coupled with massive state budget support, has made it possible to compensate for the supposedly temporary loss of profits by companies. The risk premium of equities remains attractive. According to the consensus of analysts, EPS 2021 for S&P 500 will be equivalent to 116% of EPS 2019, being the last financial year not affected by the health crisis. Based on this estimate, the 2021 EPS is 21.5x and the equity risk premium is 4.0%. It would then take an additional 25% increase in the American market to converge towards its historical average of 5%. Digital Stars US Equities Acc USD posted an increase of 5.8% in August, behind the S&P 500 NR (+7.1%) but slightly ahead of the Russell 2000 NR (+5.6%). The IT sector clearly led the American market, but the good performances of our best stocks in the sector (Digital Turbine, eGain, Synopsys) were not enough to keep up with the astonishing pace of GAFAM.

Read the monthly report in PDF format

OBJECTIVES

The objective of the sub-fund is to realise long-term capital gains and outperform the US markets as a whole by using a sophisticated quantitative model, conceived by Jacques Chahine, which makes it possible to identify "star" performers.

FUND PROFILE

An extremely diversified portfolio, invested in all market capitalisations in a purely quantitative style. Its investment universe comprises around 2,700 stocks from the United States of America, whose capitalisation exceeds 100 million USD and followed by at least 3 financial analysts.

DIGITAL STARS EUROZONE

Monthly update August 2020The stock market "Recovery" initiated in March was further extended in August. The American indexes beat their historical record again, while in Europe, stock markets caught up nearly 60% of the sharp decline observed between February and March. This dichotomy between the real economy and the financial markets may seem surprising. The fall in GDP in 2020 will indeed be spectacular and unprecedented since the post-war period. However, the coordinated action of central banks to maintain low rates on a lasting basis, coupled with massive state budget support, has made it possible to compensate for the supposedly temporary loss of profits by companies. The risk premium of equities remains attractive. According to the consensus of analysts, EPS 2021 in Europe will be equivalent to 88% of EPS 2019, being the last financial year not affected by the health crisis. Based on this estimate, the 2021 EPS is 16x and the equity risk premium is 6.6%. It would then take an additional 20% increase in the European market to converge towards its historical average of 5%. The Digital funds ended August strongly up and significantly outperformed their benchmark indices. Cyclical stocks: Industrials and Consumer Discretionary led performance, as did Technology, whilst defensive stocks underperformed. The stock picking effect was also very positive, particularly in the healthcare sector (Shop Apotheke). For the second month in a row we note significantly (50%) more upward revisions of estimated 2020 earnings than downward revisions for the stocks composing the funds. The monthly performance of Digital Stars Eurozone Acc was +6.3%, compared with +3.5% for the MSCI EMU NR.

Read the monthly report in PDF format

OBJECTIVES

The objective of the sub-fund is to realise long-term capital gains and outperform the European markets (excluding United-Kingdom) by using a sophisticated quantitative model, conceived by Jacques Chahine, which makes it possible to identify "star" performers.

FUND PROFILE

An extremely diversified portfolio, invested in all market capitalisations in a purely quantitative style. Its investment universe comprises around 1,300 stocks from the European Union, Switzerland and Norway but excluding the United Kingdom,, whose capitalisation exceeds 100 million euros. The sub-fund may invest up to 50% of its net assets in large cap stocks of the Euro Stoxx 50.