Aperture Small Cap Innovation - Q2 2024 Manager Commentary
In Short
Aperture Small Cap Innovation Fund: Commentary for Q2 2024
Quarter in review
The MSCI Europe Small Cap Net Total Return index ended the quarter slightly up 1.46% despite the return of volatility induced by the French elections. June marked the worst relative performance (negative mid-single digits relative) for European equities compared to US stocks since the start of the conflict in Ukraine, dampening the enthusiasm for Europe but not cancelling it in our opinion (see the outlook section). Increased risk aversion weighed on cyclical stocks, with Consumer, Bank, Construction and Automotive underperforming relative to defensive parts of the market. Small Caps performed broadly in line with Large Caps, although with a degree of volatility between May (M7EUSC +2.57 vs M7EU) and June (-2.36 relative). Risk was also visible in crypto with Bitcoin recording a -15% drop from its March highs.
