Narval Europa

HISTORIC class A FUND – Data as at close of business 05/31/2026. Source: Miraltabank.
From 23/12/2022: Change in Class A management fees (1.20%/9% success) and change in benchmark index to MSCI Europe.
From 02/11/2020: Class A data valid until 23/12/22 with management fee of 1.60%, and benchmark Stoxx600 TR.
Before 02/11/2020: Class A data valid until 02/11/20 with management fee of 1.10% and Stoxx600 TR benchmark”

May was marked by a partial easing of geopolitical tensions. Wall Street led the global rally, pushing the S&P 500 to all-time highs, while European equity markets advanced on the back of semiconductors and strategic materials. This came in a month in which a draft 60-day memorandum between the U.S. and Iran helped Brent crude pull back by nearly 15%. However, the U.S. PCE deflator surprised to the upside at +3.8% year-over-year, and the market is now pricing in zero Fed rate cuts for 2026. In the Eurozone, the ECB left rates unchanged, with markets pricing in an initial 25-basis-point hike for June after an upward revision of inflation expectations flagged by Lagarde. Against this backdrop, the Class A portfolio delivered a +3.5% return in May, outperforming the benchmark’s +3.16%. We actively adjusted exposure throughout the month, ending around 90% invested with a beta of 0.95, and temporarily pausing the concentration process initiated in April.

From a sector perspective, we increased exposure to cloud computing, artificial intelligence, and defense—areas where we had been underweight—while reducing positions in chips and semiconductors after their strong rally. Many of these moves, both additions and trims, were implemented via an options program, taking advantage of elevated implied volatility to optimize entry and exit levels. The main performance detractors were energy, renewables, and utilities, in contrast to the boost from materials, metals, and networks, alongside the continued strong rally in chips and semiconductors.