TGV Partners Fund 2022 Shareholder Letter

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Dear chap investors/compounders,

I americium very pleased to supply you pinch nan investor missive (TGV) Compound Interest arsenic of December 30th, 2022.

Overview of nan improvement of nan portfolio - graphic [1]

Overview of nan improvement of nan portfolio - schematic [1]

The worth of a money portion stands astatine 131.68 euros arsenic of nan reporting date. This corresponds to a diminution of 28.5% successful 2022, aft each costs. In comparison, nan DAX has mislaid 12.4%. This is simply a very unpleasant consequence for 2022, aft nan 2 satisfactory preceding years. I stock your experience: My backstage finance successful TGV represents a ample portion of my liquid assets.

The fund's finance strategy is to put complete nan agelong word successful companies that make nan astir charismatic imaginable increases successful worth complete a agelong play of time. With this strategy, years for illustration this 1 are undesirable but unluckily inevitable. Despite nan antagonistic banal marketplace performance, nan intrinsic worth of nan portfolio has accrued complete nan past year, according to my assessment.

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Since nan fund's inception, nan annualized return of TGV aft each costs has been 7.6% per year. The portfolio has outperformed nan DAX since inception. An finance successful TGV astatine nan commencement of nan money has outperformed nan DAX by 9% aft each costs.

Portfolio overview for nan December 30th, 2022

Assets successful TGV / Net Asset Value

12,782,610.62 Euro

Cash / liabilities arsenic % of assets

8.04 %

Number of companies


The positions successful nan TGV arsenic of December 30th, 2022 are successful alphabetical order:

  • About You
  • EQS Group
  • Interactive Brokers (IBKR)
  • Intred (OTC:INRSF)
  • Mediqon (OTCPK:MDCKF)
  • Mercadolibre (MELI)
  • StoneCo (STNE)
  • Tucows (TCX)

Portfolio overview

In 2022, nan banal and enslaved markets person partially corrected nan exaggerations of nan past years. The TGV has besides been affected by this correction. Nevertheless, rather a fewer companies connected and disconnected nan banal marketplace are still sportily weighted today, pinch precocious maturation assumptions and debased discount rates based connected antagonistic liking rates successful existent terms. On nan different hand, I spot much and much cheaply weighted businesses.

Looking successful nan rear-view mirror, it feels easy to spot that 2021 was characterised by exuberance. Niels Bohr, Nobel Prize-winning physicist, stated, "Predictions are challenging, particularly erstwhile you're talking astir nan future." That was existent past and it is existent today. No 1 knows really nan markets will develop. To reside this uncertainty, I effort to find companies and guidance teams that tin outperform operationally successful astir scenarios. Furthermore, it helps TGV to make investments that look inexpensive comparative to their intrinsic value. This is because a favourable valuation additionally reduces nan effect of realised operational risks connected nan finance result.

At this constituent I would for illustration to springiness you a little interim position of nan individual investments, successful alphabetical order:

I already presented About You to you successful item successful nan 2022 semi-annual letter. Since then, nan institution has had to standard backmost its targets for nan 22/23 financial twelvemonth and is successful nan process of reducing its precocious inventories. This is besides affecting nan remainder of nan manner industry. The logic for this is nan reluctance to buy, particularly successful nan DACH region. On nan different hand, nan situation has made nan manufacture little charismatic for imaginable caller entrants and entree to maturation investments has dried up. The "gold rush" successful e-commerce is complete for nan clip being. This besides applies to accepted retail: respective long-established companies specified arsenic Görtz aliases Galeria Kaufhof had to record for insolvency successful 2022. The declining title gives dream for rising returns among nan remaining large players, which besides see About You. The institution continues to person a coagulated rate position and is successful nan process of further strengthening its equilibrium expanse arsenic a precautionary measurement to return moreover amended advantage of opportunities. The institution had a very difficult 2022, but nan inventory clean-up will beryllium completed successful nan coming months. Accordingly, nan outlook for 2023 is amended than nan 2022 retrospective: About You continues to expect to go profitable successful 2023. This is presently not priced in.

EQS Group is simply a package company. It offers products and services to different companies to meet regulatory requirements for superior marketplace connection and compliance. Both are important components of ESG. This missive is unluckily not nan correct format to spell deeper into nan company, arsenic I person been appointed to nan company's Supervisory Board. I truthful mention you to nan company's reporting. The yearly study is expected to beryllium published astatine nan extremity of March.

Interactive Brokers continues to turn very profitably pinch pre-tax margins good supra 60%. The institution is, successful my opinion, nan champion afloat automated agent successful nan world today. It offers starring prices, entree to galore trading venues and products, and precocious information done an fantabulous equilibrium sheet. Rising liking rates person accelerated net maturation successful 2022. In addition, it has go evident that competitors specified arsenic Robinhood, immoderate of which are highly hyped, person a costs problem. Robinhood is nan pioneer of nan alleged neo-brokers and advertises nan "democratization of nan financial industry" and nan abolition of nonstop trading costs. The customer ends up footing nan bill, only past indirectly, by having his transactions passed connected to high-frequency traders earlier execution. The customer becomes nan merchandise and gets worse execution rates. Robinhood is acold from profitable contempt fierce cost-cutting measures: In nan past 12 months, each dollar of gross was beautiful overmuch matched by a dollar of loss. Interactive Brokers is not cleanable either: customer work and nan mobile merchandise acquisition request improvement. Overall, nan positives outweigh nan negatives, moreover against nan backdrop of its unsocial marketplace position.

Intred is investing successful nan description and cognition of fibre networks successful bluish Italy. The institution focuses connected business customers and has laid 9,500 kilometres of fibre successful Lombardy. The business continues to tally for illustration clockwork successful 2022. The biggest proviso bottlenecks were for bitumen to re-close torn-up roads. Since nan extremity of 2021, nan institution has been investing successful a awesome task pinch nan Italian authorities to link schools successful Lombardy via fibre optic cables. This task offers nan institution nan opportunity to importantly grow its beingness astatine highly charismatic conditions. High returns connected superior for further investments of good complete 20% are 1 result. The institution is almost wholly equity-financed and has an fantabulous competitory position successful its region.

The finance holding institution Mediqon invests chiefly successful entrepreneurial successions successful micro-enterprises via respective platforms. So far, Mediqon has been capable to transportation retired and finance its acquisitions very favourably. The team's occurrence speaks for itself and has attracted well-known US investors specified arsenic Mitchell Rales, 1 of nan founders of Danaher. The group progressive are, successful my estimation, group of integrity, intelligence and power - an fantabulous combination. Due to nan demographic change, nan imaginable to put semipermanent superior successful succession situations of micro-enterprises is gigantic. The institution is conservatively financed and tin truthful proceed to return advantage of finance opportunities moreover successful turbulent times.

Mercadolibre is nan largest e-commerce marketplace and 1 of nan largest costs work providers successful South America. The institution is led by nan squad astir laminitis Marcos Galparin and offers its customers a unsocial level for online shopping and online and offline payments. Online penetration successful Latin America is still debased and accordingly offers a batch of imaginable for some business areas. Many e-commerce companies saw income diminution for nan first clip successful 2022. Mercadolibre's sales, however, accrued by 54% successful US dollars .

Recently, a awesome competitor, Americanas, revenge for bankruptcy successful Brazil. The logic is accounting and financing problems. Fraud cannot beryllium ruled retired astatine this stage. An Asian player, Sea Limited, which was pushing into nan full continent pinch nan Shopee brand, is now concentrating only connected Brazil and is discontinuing its activities successful nan different countries of nan continent. This offers opportunities for Mercadolibre. Especially arsenic money for financing caller competitors is besides becoming scarcer successful Latin America. I estimate that Mercadolibre tin put good complete 1 cardinal US dollars each twelvemonth successful profitable maturation and innovation. Very fewer companies could raise these sums moreover successful nan champion of times. In December 2022, I visited nan company's improvement centre successful São Paulo. The sojourn confirmed nan highly affirmative belief I had gained of nan company's civilization and ambition arsenic a starring exertion institution successful Latin America.

StoneCo is a costs services supplier successful Brazil. I introduced nan institution successful nan 2021 letter. Since then, nan benchmark liking complaint successful Brazil has risen from 2% to 13.75%. This has costs StoneCo liking income, arsenic nan liking complaint summation could only beryllium passed connected to customers pinch a delay. Contracts pinch customers had to beryllium adjusted first. A unchangeable aliases moreover falling liking complaint would beryllium very affirmative for nan company, arsenic absolute liking income would again settee astatine a level that is astir 50% higher. A sizeable portion of nan profit depends connected nan liking income. I besides visited Stoneco and its nonstop competitors successful Sao Paulo past December to summation a amended knowing of nan competitory business and nan imaginable changes brought astir by nan Brazilian Openbanking Initiative. The institution is favourably weighted compared to nan remainder of nan industry.

Tucows is simply a Toronto-based holding institution pinch 3 businesses: Domain reselling, fibre rollout and telecom operations software. The institution has been deed hardest by rising liking rates arsenic it is successful a very superior intensive shape of fibre roll-out. The guidance squad is moving difficult to unafraid backing for early description . The company's imaginable appears very precocious fixed its existent valuation.

I visited six of nan 8 portfolio companies past twelvemonth and americium successful touch pinch nan important issues astatine each of them.

In my view, each portfolio companies person a differentiated business exemplary pinch integer, intelligent and energetic guidance teams. The companies should proceed to summation their intrinsic worth complete nan adjacent fewer years and should beryllium capable to return advantage of nan opportunities presented by nan existent changes. The companies are weighted pinch a very charismatic risk-reward ratio

Investor Meeting connected 20th May, 2023

On 20th May 2023, nan yearly investor gathering of nan Investmentaktiengesellschaft für langfristige Investoren TGV will return place. We will meet again astatine nan Godesburg successful Bonn - Bad Godesberg. You are cordially invited and I dream to invited you connected site.

As always, if you would for illustration to stock your comments, ideas and criticisms pinch me, please consciousness free to email maine astatine I invited each opportunity to learn!

Thank you for your spot and I look guardant to our continued business arsenic investors / compounders successful nan TGV Compound Interest.

Laurenz Nienaber


Explanation of nan schematic connected page 1

The floor plan connected page 1 compares nan capacity of 100 euros invested successful nan TGV astatine nan closing prices of 29.03.2019 pinch nan capacity of an balanced finance successful nan DAX and a safe, yearly liking complaint of 6%. Why did I take these 2 benchmarks? A mostly of nan investors successful TGV coming are from Germany and will astir apt proceed to beryllium from this state successful nan future. The German benchmark DAX is nan simplest and astir evident finance replacement for astir of these investors. The 2nd benchmark is simply a safe finance pinch an liking complaint of %6 p.a.. This represents nan limit supra which a capacity interest is incurred successful TGV.

Tabular comparison connected an yearly ground of TGV, DAX and Hurdlerate





6% yearly output

Delta to Dax

Delta to 6% yield

2019 (9 months)






























annualised return






[1] If you would for illustration to spot nan chart arsenic a table, you tin find it connected nan past page of this document.

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Editor's Note: This article discusses 1 aliases much securities that do not waste and acquisition connected a awesome U.S. exchange. Please beryllium alert of nan risks associated pinch these stocks.

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