Conviction Shares
Investing in companies whose earnings grow faster than the market, then holding them long enough for compounding to do its work.
Capital is not guaranteed. The underlying investments of this financial product do not take into account the EU criteria for environmentally sustainable economic activities.
Earnings drive the share price
Over the long run, a share price follows the path of its earnings. A company that grows its results faster than the market ends up ahead of it, provided it is given the time.
The link between earnings and price
A company whose earnings per share multiply sees its price follow the same slope. One whose results stagnate sees its price stagnate with them.
The effect of compounding
Steady annual growth becomes exponential over time. It is the holding period, more than the entry point, that makes the difference.
What that means for selection
We therefore look for durable earnings growth rather than for one good quarter, and we accept paying what it is worth.
A three-stage selection method
Choosing the sectors
We favour the sectors whose long-term growth is best established: consumer, technology, communication, industrials and healthcare. We set aside opaque, highly cyclical or low-margin activities, in particular banks, airlines, carmakers, telecommunications and utilities.
The selection criteria
The core portfolio brings together companies with an established record: annual earnings growth above 10% over five years, return on equity beyond 20%, operating margins above 15%, and limited distribution so as to preserve reinvestment. To these are added market leadership, barriers to entry and the strength of governance.
The sell discipline
Where the outlook is unchanged, a position is held for as long as possible. We trim when an event compromises earnings growth, when the price has run well beyond that growth, or when another company offers greater potential.
The portfolio brings together some thirty large and mid-cap companies, with low turnover. The method described above is the one communicated by the management team; actual weightings change with the markets.
A snapshot at 30 September 2026
Sector breakdown
Geographic breakdown
Data at 30 September 2026, source: the sub-fund's monthly report. Currency exposure stands at 62.2% in dollar, 27.6% in euro, 6.7% in yen, 2.4% in Canadian dollar and 1.1% in Danish krone. Breakdowns are subject to change.
Since inception
Class A · EUR Accumulation · LU1784136514
Net asset value in euros · Data as at 13/10/2026Daily net asset value of Class A, since the sub-fund was created on 1 January 2019, when it stood at €77.66. The performance figures below are as at 30 September 2026. Figures are net of ongoing charges and performance fees and exclude any entry charges. Past performance is not a reliable indicator of future results.
| Class A | 1 month | Year to date | 1 year | 3 years | 5 years | Since inception |
|---|---|---|---|---|---|---|
| Cumulative | 0.64% | 8.65% | 7.53% | 46.70% | 32.81% | 125.88% |
| Annualised | – | – | – | 13.61% | 5.84% | 11.09% |
| Calendar years | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|
| Class A | 13.34% | 11.22% | 12.76% | −21.22% | 27.59% | 13.05% | 28.71% |
Class A performance, net of ongoing charges and performance fees, excluding entry charges. It covers seven full calendar years since the launch on 1 January 2019. The value of investments may go down as well as up; capital is not guaranteed.
Top ten holdings
Weight as a percentage of net assets at 30 September 2026, within a portfolio of 39 holdings.
| Holding | Sector | Country | Currency | Weight |
|---|---|---|---|---|
| Nvidia | Information technology | United States | USD | 8.06% |
| SK Hynix (GDS) | Information technology | South Korea | EUR | 4.70% |
| Newmont | Materials | United States | USD | 4.17% |
| Samsung Electronics (GDR) | Information technology | South Korea | USD | 3.98% |
| Alphabet, class C | Communication | United States | USD | 3.70% |
| ASML Holding | Information technology | Netherlands | EUR | 3.69% |
| MercadoLibre | Consumer discretionary | United States | USD | 3.52% |
| Taiwan Semiconductor (ADR) | Information technology | United States | USD | 3.31% |
| Nordic American Tankers | Energy | United States | USD | 3.21% |
| Sandisk | Information technology | United States | USD | 3.15% |
Holdings as at 30 September 2026, given to illustrate the composition of the portfolio on a given date. They do not constitute a recommendation to buy or sell and are subject to change.
An institutional vehicle, accessible from €100
| Class | ISIN | Currency | Policy | Launch | Management fee | NAV 13/10/2026 |
|---|---|---|---|---|---|---|
| A | LU1784136514 | EUR | Accumulation | 01/01/2019 | 1.25% | €171.24 |
| D | LU2596552427 | USD hedged | Accumulation | – | 1.25% | $133.34 |
Net asset values as at 13 October 2026. The performance figures shown above are as at 30 September 2026, as are the portfolio data, taken from the sub-fund's monthly report.
Minimum initial subscription of €100. Maximum entry charge of 3%; no exit charge is levied by the fund.
Performance fee. A High Water Mark model with a hurdle rate: a fee of 10% above a hurdle of 7% per annum, over a reference period running from 1 January to 31 December. It has applied since 1 January 2026, following a decision of the general meeting; the KID therefore shows 0.00% for the previous financial year, when it did not yet exist.
Daily liquidity. Subscriptions and redemptions every business day before 4 p.m., at the following day's net asset value.
Ongoing costs (KID, Class A): 1.88% a year in management, administrative and operating fees, plus 0.09% in estimated transaction costs.
Frédéric Faure
The sub-fund is managed by Privalux Management S.A., within an operating framework built around Edmond de Rothschild Asset Management (Luxembourg) as ManCo and Edmond de Rothschild (Europe) as depositary. Frédéric Faure also manages the Flexible Allocation sub-fund and signs most of our analyses.
His analysesRegulatory documents
Any investment decision must be based on the fund's legal documentation: the prospectus and the Key Information Document (KID).
Factsheets
Monthly reports by share class.
Prospectus
Full prospectus of Gekko Fund SICAV, including the Conviction Shares sub-fund.
Understanding the risks before investing
The summary risk indicator (SRI) places the fund in category 4 out of 7, a medium risk class, over a recommended holding period of 5 years.
Warnings
Capital is not guaranteed: an investor may lose all or part of their investment. The sub-fund is invested in equities and offers no protection against market movements. Class D is hedged against currency risk; Class A is not.
The sub-fund is exposed to movements in international equity markets, with no constraint of market capitalisation, sector or geography. The main risk factors are:
- Equity risk: full exposure to equity markets, unhedged
- Currency risk: securities denominated in currencies other than the euro, up to 100%
- Liquidity risk: possible difficulty in selling certain holdings
- Volatility risk: pronounced swings in the net asset value
- Emerging markets: political uncertainty and lower liquidity
- Sustainability risk: an environmental, social or governance event affecting the value of an investment
The portfolio is concentrated in some thirty holdings, which increases the impact of each position. Risk control rests on the ManCo's permanent risk management function and on a system of internal limits.