European Small Cap Equities

The investment team seeks to invest in mispriced high-quality companies that offers long-term compunding potential in the small cap universe.

Business quality

• Companies that generate a high rate of return on the invested capital – reinvestment/allocation of capital
• The market underestimates the compounding effect of high return companies with a strong moat
• High quality companies have lower risk – lower probability of financial distress, fewer profit warnings
• ESG considerations are integrated into our quality assessment

Undervaluation

• Value investing works and is driven by overreaction to both positive and negative fundamentals
• Value principles combined with quality gives an attractive risk[1]adjusted return - avoiding value traps, low quality companies