As of the end of 2020, Velcan Holdings is actively managing its treasury of about Eur 104.5 million (net of leverage).
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 treasury of the Group includes mostly: equity long positions (EUR 44.3m), gold and silver related stocks (EUR 23.7m), oil related stocks (EUR 21.6m), corporate and government bonds (EUR 19.5m) and cash (EUR 11.7m including Forex). The portfolio totaling 104.5 is net of a bank overdraft of EUR 23.9m.
The equity portfolio, including gold, silver and oil related stocks, is deployed across a diversified array of 71 different issuers and ETFs. The Eur 19.5m gold position, which the Group considers to be equivalent to a separate currency, is held through 4 positions: a large position of EUR 15.5m of SPDR Gold Shares, which is an ETF backed by physical gold, and 3 smaller holdings in 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 are banking and energy.
4 oil related stock positions are above EUR 3 million as at 31/12/2020: Royal Dutch Shell Plc, Total SA, Exxon Mobil Corp and and Chevron Corp. As to non-oil and non-gold equity, the Group’s biggest positions are in the financial sector, with 5 positions above Eur 2.5 million each: Citigroup Plc, Wells Fargo & Co, Banco Bilbao Vizcaya Argentaria SA, Banco Santander and Capital One Financial Corp. All other non-oil and non-gold/silver positions are below Eur 2 million, and diversified in various sectors such as notably automotive and heavy industries.