Summary of Conventum – Alluvium Global Fund’s Q2 2026 Investor Letter
Market Overview:
- The second quarter of 2026 saw a significant equity rally, particularly in semiconductor companies, despite ongoing geopolitical uncertainties and oil market volatility.
- The Fund experienced declines: 1.4% in EUR, 2.2% in USD, and 3.9% in AUD.
- Key performers included Alphabet, boosted by strong cloud growth, while other holdings like Robert Half and H&R Block showed solid gains. However, certain sectors like cable businesses and healthcare underperformed.
Focus on Group 1 Automotive, Inc. (NYSE: GPI):
- Current share price: $262.22 (as of September 16, 2026).
- Recent performance: Shares declined 0.61% over the past month and 43.11% over the last year, with a market capitalization of $3.12 billion.
Insights from the Fund:
- The letter highlighted concerns regarding Group 1 Automotive’s performance, citing negative impacts from poor weather on servicing and parts revenue, alongside significant job cuts (approximately 700 positions) in its U.S. operations.
- The Fund initiated a divestment strategy, attempting to sell some shares before declines rendered the remaining stake (2.3% of the Fund) less favorable.
Hedge Fund Popularity:
- Group 1 Automotive was included in the portfolios of 42 hedge funds by the end of Q2, an increase from 38 in the prior quarter. However, the Fund suggests that there are potentially more attractive investments in AI stocks.
For further information and insights, you can view the full investor letter here.
