They explained: “We always hope for the best but prepare for the worst.
“Our starting point is to expect the worst possible outcome for any election. We then ask ourselves how a harmful result – for example Marine Le Pen being elected as French president – would impact the companies we are interested in.
“If the downside risks are too great, we simply do not get involved.”
Ahead of the second round, the team is re-evaluating the resilience of potential investments to a worst-case scenario shock, valuations and potential upside.
“Politically, the populists have not succeeded either in Spain nor in the Netherlands and Marine Le Pen failed to reach first place in the first round of the French presidential election,” the managers added.
“While political risks remain, perhaps they are not as great as previously feared.”
