This week two of our portfolio companies — Bank Pekao and Indra — reported strong Q3 results, reinforcing the strength of our financials and defense themes. On the other hand, Zalando continues to drift lower, and with earnings around the corner, next week’s results will be decisive in determining whether it keeps its spot in the portfolio.
Bank Pekao (+1%)
A steady week for the Polish lender. Markets are still digesting the macro backdrop — falling inflation, the prospect of policy easing, and the bank’s strong capital position. Pekao continues to signal confidence in the Polish economy’s resilience and remains well-positioned to benefit if consumer and corporate credit demand accelerates into 2025 and 2026. Nothing dramatic in the price action, but the story remains intact: high-quality balance sheet, disciplined risk culture, and optionality from the ongoing restructuring at PZU. The Bank reported 4% rise in 3Q profits.
CVS Group (-10%)
CVS continues its quiet repositioning to reset investor perception. The move to the UK Main Market and the recently announced buyback both signal management’s confidence and a clear push for greater institutional visibility. The regulatory overhang hasn’t disappeared, and it continues to weigh on sentiment. Yet despite this week’s notable share decline, our view remains unchanged: the company’s fundamentals are intact, and, over time, the regulatory scrutiny could actually strengthen its position within a more consolidated market.
From a tactical standpoint, we may consider a temporary exit to reallocate capital toward the merger arbitrage opportunity with Empiric. Once that deal is completed and the spread closes, we could look to re-enter CVS at a more attractive level.
Safran (0%)
After presenting good results last week, this week the stock didn’t move much. Strong engine aftermarket demand and execution in the civil aviation recovery continue to underpin sentiment. Management raised guidance recently, reinforcing the “long runway” narrative (pun fully intended). While valuations aren’t cheap, the market is rewarding discipline and backlog visibility — this remains one of Europe’s high-quality industrial champions.
GXO Logistics (+0.5%)
GXO is calm before the earnings storm. The stock is largely range-bound ahead of results next week, with the recent senior leadership reshuffle framed as preparation for the next phase of expansion in North America and APAC. Investors will focus on margins and contract momentum — and whether automation adoption continues to support long-term profitability. No fireworks, but very much a “wait for earnings” week.
Zalando (-7%)
Zalando keeps executing on its platform strategy while refreshing leadership in the finance function. The incoming CFO brings operational and digital-focused experience — interesting timing as the company continues to lean into tech-driven discovery tools and advertising monetization. As advanced last week, we are following closely Zalando. Next week, the company will present its 3Q results and we will take a decision whether to keep it or not in the portfolio.
Indra (+13.5%)
Momentum continues. Indra presented 3Q solid results. Strong performance year-to-date, particularly in defense and air traffic management, supports the investment case that Indra is evolving beyond a regional systems integrator into a global specialist with political tailwinds and sovereign tech relevance.
