IA Europe ex UK
The value choice : LF Lightman European Hughes has owned the LF Lightman European fund for the past couple of years , saying it represents a method of adding value to his portfolios . The analysts at FE Investments are also fans , saying that what separates manager Rob Burnett from other value managers is that he is not entirely focused on identifying stocks that are cheap – instead he aims to identify what he refers to as “ operational momentum ”, meaning catalysts that should drive a rehabilitation of the company ’ s earnings and ultimately its share price . “ This disciplined process should help avoid falling into value traps and hence limit the downside risk ,” the analysts add .
The small-cap pick : Comgest Growth Europe Smaller Companies Investors seeking longterm capital growth through exposure to high-quality small caps may want to consider the Comgest Growth Europe Smaller Companies fund , says Amaya Assan , head of fund origination at Square Mile . However , while she holds Comgest ’ s European team in high regard , she notes that managers Eva Fornadi and Denis Callioni take sizeable positions at the stock , sector and country level , which can add to the fund ’ s volatility . “ We would expect this fund to do well when the growth style is in favour , but lag in more value- or cyclicallydriven markets ,” Assan adds .
The flexible option : Janus Henderson European Selected Opportunities A team that Rush rates highly is the one behind Janus Henderson European Selected Opportunities . “ John Bennett heads the team and has a long-term record of investing flexibly across sectors , styles and market caps ,” he says . The fund has fallen into the third quartile over one and three years , but is still ranked first quartile over five with gains of 46.7 %, compared with 35.3 % from its sector . At the start of the year , Bennett said some of the biggest opportunities were in “ old fashioned Europe ” such as industrials and materials , which could hold the key to the green transition .
Issue 95 - May 2023 / 57 /