European Holding Companies - Makor’s bi-weekly monitor
Our main takes form the past two weeks:
CDI/LVMHspread continued to perform in line with our expectations and narrowed by another ~1%. The spread is currently at a level of 11%, slightly below its last three years average trading history. We recommend to take profits and exit the trade which has yielded ~7% return since our recommendation at the end of May. See current Stub value and more data in the report attached.
Renault/Nissan spreadwas the highest move over the past two weeks with discount narrowing by 4.5%, in line with our expectations (see our report from June 28 in which we recommended to go long Renault/short Nissan + SXAPEX).
Exor (EXO: IM) discount was stable and we still recommend our trade from June 29 (Short Exor/Long listed portfolio + SXIPEX).
Full report attached!