January 2013

January, 2013

To whom it may concern,

We apologize for the delay of the letter. Due to a time constraint we are not able to write monthly investment insights for the following months anymore. We will provide necessary insights and will run our portfolios the same way. But we cannot provide the in depth analysis of the past months anymore.

Our portfolios are doing well, +6% for Hidden Champions and +4% for the Stockscreener Portfolio for the last year. Given the outstanding result of our benchmark (European & in specific German Stock markets 20% – 30%), our performance lags the benchmark significantly. But we started managing our portfolios halfway in the year 2012 and have established positive absolute returns well above the inflation rate.

We are aware that the Stockscreener is not fully invested yet and the Portfolio will start being fully invested in April 2013. From this date the investment strategy should enter its full potential. We are excited to reach this date and are satisfied with the current results. This month we added MS Industrie AG and Villeroy & Boch. MS Industrie AG is a Holding that manages several stakes of industries. It tries to manage them very carefully and aims to hold companies that have a competitive advantage or operating in a niche sector. Villeroy & Boch trades slightly below book value and with its strong name and not bad financials we are confident that it will trade higher next year. Both companies are very conservative and have low valuations. Given the current stock market highs, it was difficult to find two businesses like that.

A minor adjustment for the Hidden Champions portfolio was made. We sold our stake in Einhell AG. Currently up 6.9% we wanted to close this short-term position to gain some returns from the current stock market highs. We still hold this company in the other portfolio and are convinced that it did not achieved its full potential yet, but we did not wanted to be stuck in this position for longer.

Sincerely,

Aeneas Investment Team