London-based Jupiter Asset Management has rolled out a strategy targeting “hidden gems” in the European small-cap sector excluding the UK.
Managed by the firm’s co-head of European growth, Mark Heslop, the strategy seeks to provide investors exposure to firms that show prospects of medium to long-term growth.
Heslop said: “The [European small-cap] sector covers a large universe of stocks where many of the companies are either unknown or under researched.”
“In this environment, diligent and thorough analysis can uncover hidden gems, that offer significant long-term growth opportunities and have been overlooked by the market.”
The Jupiter European Smaller Companies Fund will use bottom-up analysis seeking to identify high quality, high-return businesses whose equity is mispriced or undervalued by markets, exploiting this anomaly aiming to generate alpha.
The unconstrained fund will invest in a high conviction, concentrated portfolio of approximately 50-60 smaller companies that are listed in, or heavily exposed to Europe.
Companies that fit the bill are defined as any firm that, at the time of investment, is smaller by market capitalisation than the 225th FTSE World Europe (ex-UK) index.
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