Overstone World All Cap Equity Fund on easyJet plc
Thesis
easyJet was among the fund’s strongest quarterly performers while the airline was involved in a takeover. The manager considers the takeover valuation below the company’s underlying worth. That assessment points to remaining fundamental value despite the appreciation already realized. The letter does not state an additional position increase or a numerical appraisal.
“easyJet is in the midst of a takeover, at a price which we think still represents undervaluation.”
Key risks
- The takeover price may cap shareholders’ ability to realize the manager’s estimated value.
- The transaction was still in progress at the reporting date, leaving completion timing and deal outcome uncertain.