Conventum - Alluvium Global Fund on Universal Music Group N.V.
Thesis
Alluvium views Universal Music as a structural franchise built around a difficult-to-replicate catalogue of high-quality music rights. The company monetizes that catalogue through streaming platforms and occupies a powerful industry position. The fund had previously bought meaningfully into a sell-off it could not justify, and a restructuring proposal from Pershing Square appears to have prompted actions including a partial Spotify divestment. Universal remained a large portfolio position at quarter end.
“Universal enjoys a formidable industry position - holding the rights to the highest quality music catalogue and facilitating its monetisation via the streaming platforms.”