The luxury sector is moving slowly with pockets full of cash

Published on November 3, 2024 at 11:08. / Modified on November 3, 2024 at 3:37 p.m.

Just because luxury has lost a leg in China doesn’t mean the industry has stopped running. This is essentially the image that the managers of a luxury fund in Geneva paint of the sector after the shower of the interim results published this fall. A positive view, which is based on the capacity for adaptation, which the sector has already demonstrated through numerous economic downturns. It is not a question of voluntarily taking the opposite view of the massive stock market correction that the sector is experiencing this year, but of taking advantage of the indirect effects of this slowdown.

The speech obviously clashes with the ambient feeling. The fund in question is also atypical: DGC Franck Muller Luxury Fund, launched by Genthod Global Wealth Management, the investment vehicle of Vartan Sirmakes, owner of the Geneva watchmaking group Franck Muller Watchland. The opening dates back to December 2014. The manager is NS Partners in Geneva and the advisor is Genthod Global Advisory. The fund now weighs 70 million francs and its performance slightly exceeds the S&P Global Luxury benchmark index, down more than 3.5% since the start of the year, compared to “-1.39%” for the DGC Franck Muller Luxury Fund – increasing by 6% per year on average over ten years.

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