LFDE Bolsters Cyclical Exposure with Samsung, Visa, and Mastercard
La Financière de l'Echiquier (LFDE) has made significant changes to its flagship fund, Echiquier World Equity Growth. The fund now holds Samsung Electronics as a new addition, while increasing its stakes in Visa and Mastercard. This move is part of the fund's strategy to boost cyclical exposure, driven by improving manufacturing PMIs and upward revisions to earnings estimates for the MSCI All Country World Index.
The fund has exited AstraZeneca and FEMSA due to tariff threats and weaker Mexican consumption, respectively. Brazil now accounts for more than 9% of the portfolio's Latin American exposure. The managers point out that both Visa and Mastercard have weathered previous regulatory cycles and continue to adapt their business models.
The payment groups' share prices fell on regulatory concerns, but the fund managers believe this does not threaten their long-term trajectory. They cite recurring revenue from inflation-tied payment volumes, resilient consumer spending, and growth in value-added services such as fraud prevention and tokenization.