Overview
Tycho CapeView European Long Short Fund seeks to deliver consistent, risk-adjusted returns by taking long and short positions in European equities. The fund combines fundamental, bottom-up stock selection with disciplined portfolio construction and active risk management to generate positive alpha, while maintaining low net market exposure.
Strategy & Manager
Fund Strategy
CapeView is a low-net, low-gross European equity long short fund that combines fundamental bottom-up stock picking with active risk management. The aim is to generate a consistent, low volatility return stream, with positive alpha, and to preserve capital in market drawdowns. The CapeView portfolio typically consists of circa 40 investments, with roughly equal number of longs and shorts, across all sectors except life insurance and biotechnology. Investments are made in Western Europe, Scandinavia and UK companies only, where the markets are liquid and have strong regulatory frameworks. The strategy has a flexible mandate to invest across all market capitalisations, with a position sizing matrix that limits the position size of less liquid names. Options are used for hedging purposes and actively traded to minimise cost.
Key Persons
Sushil Shah - Portfolio Manager
Sushil joined Trafalgar Asset Managers (the predecessor Investment Manager) in November 2001. Prior to co-founding the Azri Fund in 2007, Sushil was the firm’s Head of Equity Trading, covering equity markets globally but with a focus on European stocks. Prior to joining Trafalgar, he worked for Accenture in the Financial Services Market unit. Sushil holds a MBA from City Business School and a Bachelor’s Degree with Honours in Economics from Manchester University.
Michael Sakkas - Portfolio Manager
Michael began his career at Merrill Lynch Investment Managers (ex-Mercury Asset Management) in 2000 and was a member of the UK Specialist Team where he co-managed the UK hedge fund. He moved to Park Town Asset Management in 2004 as a joint portfolio manager and equity partner, where he co-managed the long-short equity strategy. In 2007, Michael joined Trafalgar to launch the Azri fund with Sushil. Michael has a BSc from the University of Bristol in Economics and Economic History and is a CFA charter holder.
Performance
Class Performance
Commentary
Investment Manager’s Commentary – June 2026
The Tycho CapeView European Long Short Fund returned +3.2% (Class F USD, net) in June. It was a strong month for the fund, with both books generating positive return as the market rally broadened out and dispersion improved.
The performance in the short book was particularly strong, and the biggest gain for the month came from a short in a Continental European alternative asset manager. The only corporate newsflow was the appointment of a new CFO in the early part of the month which in our view is a minor issue. However, a number of sell-side analysts published notes ahead of the 1H results in July which were incrementally more bearish. Further, though the firm is not involved in the private credit market, there have been several articles highlighting potential problems in the private credit markets, which we feel have soured investor sentiment to the whole private markets space.
On the long side, Next, the UK retailer, performed strongly thanks to the removal of an overhang on the international growth, which emerged as a result of the Iranian conflict. Having given a moderated update on expectations for their largest growth driver (international) at Q1, positive developments have meant that revenues are now back in growth yoy and we expect them to have fully recovered over the next month or so.
Detractors included a long position in Centrica, as utility and commodity-exposed names continued to underperform as UK political developments and Iran peace deal weighed on energy prices. However, we continue to view Centrica’s fundamental outlook positively and believe it is well positioned. The higher-for-longer UK interest rate environment remains beneficial given the company’s substantial net cash position. In addition, the summer gas storage refill season may prove more challenging than the market currently anticipates, which could provide further support to power markets.
Schaeffler also gave back some of last month’s gains as autos were weaker after BMW lowered their FY margin outlook. Whilst the macro-outlook can provide headwinds, electric vehicle and hybrid car sales have been stronger than forecast which benefits the turnaround of the E-Mobility segment within Schaeffler. We continue to believe Schaeffler is fundamentally undervalued, assuming the company simply delivers on the 2028 targets for its core business as outlined at last year’s Capital Markets Day.
Overall, the macro backdrop is benign for now and that’s good enough for the micro in our portfolio to come through. As such, exposures for the fund remained largely unchanged. We rotated some capital to new names but kept overall gross roughly flat. If things remain as they are we can foresee gross marginally increasing as we come out of the summer. We will update in more detail with the upcoming quarterly call.
Documents
Contact
Registered Office of the ICAV:
35 Shelbourne Road
4th Floor
Ballsbridge, Dublin
D04 A4E0
Ireland
Dealing Contact:
Tycho ICAV
Attention: TA Department
c/o Société Générale Securities Services
SGSS (Ireland) Limited
3rd Floor, IFSC House
IFSC
Dublin 1, Ireland
T: 00353 1 6750 300
F: 00353 1 6750 351
E: [email protected]
Tycho Contact
Georg Reutter
Partner
T: +44(0)20 3384 8794
E: [email protected]
JJ Jardine-Paterson
Head of Investment Solutions
T: +44 (0)20 3598 6445
E: [email protected]
