ICELAND

All,

Please find attached an early analysis of Iceland.

We are going long the 25s for 2% of NAV and may be looking to pick up more on troughs, subject to a suitable Brexit hedge.

The company is fundamentally stable, if spending heavily on its expansion, which will keep leverage elevated for the next two quarters, before it should fall again close to levels seen in March 18. 

For lack of fundamental issues we see this name as a bounce in all but the worst Brexit scenarios and are expecting a stable performance from one of the few British retailers able to invest in growth while achieving positive LfLs.

Wolfgang