We’re pleased to share the following Q&A with Don Fitzgerald, fund manager of the Tocqueville Value Europe Fund, based in Paris. Don selects stocks on a bottom-up basis, supported by in-house research. The fund has a solid record of outperformance and below average volatility. Don graduated from Trinity College Dublin in 1996. He previously worked in structured finance and as an investor in distressed debt in Dublin, London, Frankfurt and Paris.
MOI Global: Where do you see value among European equities?
Vinci [France: DG] owns a portfolio of high-quality concessions: about half of the French tolled motorway network and about twenty airports in France, Portugal and Cambodia.
Don Fitzgerald: The recent weakness has thrown up some interesting opportunities among the companies perceived as slightly more cyclical. We’ve recently built a position in out-of-favor French concession and construction group Vinci [France: DG]. The group owns a portfolio of high-quality concessions: about half of the French tolled motorway network and about twenty airports in France, Portugal and Cambodia. This concessions portfolio accounts for the bulk of the value of the group. A smaller part of the group’s value lies in its construction and contracting division, which has done well over the years but is currently facing a slow environment in its domestic French market and had some execution problems in the U.K. The group is shareholder focused, with employees and management holding 10% of the capital.
MOI: Why do you think Vinci is out of favor?
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