As of the end of 2022, Velcan Holdings is actively managing about Eur 124.4 million (net of leverage) of minority investments.
We have invested over the years in an extremely diversified array of financial assets, with an important reallocation of investments from bonds to equity and commodities in 2020. As of the end of 2020 the main investments include mostly: equity long positions (EUR 44m), gold and silver related stocks (EUR 24m), oil related stocks (EUR 22m), corporate and government bonds (EUR 19m). The Group used some leverage at the end of 2020 and its net cash position was negative (EUR – 12m)
We have invested over the years in an extremely diversified array of financial assets, with an important reallocation of investments from bonds to equity and commodities in 2020. As of the end of 2022 the main investments categories are equity long positions (EUR 35m) and gold and silver related stocks (EUR 25m).
The equity portfolio, including gold and silver related instruments, is deployed across a diversified array of 52 different issuers and ETFs. The gold position, which the Group considers to be equivalent to a separate currency, was held through 4 positions. The investment in gold mining companies through the VanEck Gold Miners ETF being the most significant, valued EUR 17.9m as of 31.12.2022. In addition, the Group has smaller holdings in specific gold mining companies.
While reallocating its financial assets towards equity, the Group focused on a value investment strategy. The Group has focused on companies which were trading at historically low prices and could benefit from the improvement of the covid situation. The two sectors hence selected were banking and energy.
In 2022, the Group reduced all exposure to oil related stocks mainly in January and May of 2022 thereby capitalizing on the rise in price on these stocks held since 2020. The Group further invested in Chinese stocks namely Tencent and Alibaba. Exposure to Volkwagen AG was also increased. This was also partly funded by a reduction of the exposure to JD.com, Global X China Semiconductor, Ping An, banking stocks including Citigroup, Wells Fargo, Capital One, BBVA, Santander, UBS Group and DBS Group and Orange SA.
As of the end of the year 2022, the Group financial assets were exposed to the Japanese Yen (36.50% against 26.4% in December 2021) and the EURO (31.75% against 17.4% in Dec 2021). Exposure to the US Dollar was greatly reduced (-2%, excluding the overdraft against 46.6% in December 2021).
The complete description of the financial portfolio of the Group can be found in the annual report 2022, available under the investor section of this website.
Historic business line:
Until July 2021 Velcan Holdings had been developing and running power projects (hydropower and biomass) in several emerging countries.
Except for one still fully owned hydro power plant in Brazil (the Rodeio Bonito 15MW hydropower plant commissioned in 2009) all other power assets and projects have been divested or suspended.