All too often overlooked and underappreciated, European smaller companies continue to quietly and consistently punch above their weight.
Largely immune to the prevailing macroeconomic and political winds that tend to dictate the prospects of their larger peers, European small caps have significantly outperformed European large caps over the long term.*
Ian Ormiston has over 20 years of experience of managing European smaller companies funds.
Stock picking is crucial in the inefficient world of smaller companies. Finding a diverse range of substantially undervalued companies can generate a broad base of returns. Rigorous use of price targets, catalysts and investment checklists leads to long-term investing.
The approximately 50 stocks held within the portfolio are equally weighted; we do not follow benchmark weightings. This gives a more coherent portfolio and reduces individual stock risk while seeking to maximise returns.
The fund invests in companies, not countries or Europe as a single market. Political and economic noise barely registers at the smaller company level, leaving the team free to invest on the basis of company fundamentals.
Managed by the experienced Ian Ormiston, the Merian Europe (ex UK) Smaller Companies Fund invests in European smaller companies and offers a blended investment style covering growth, value and quality. The manager believes that inefficiencies increase lower down the market capitalisation scale. Stocks are equally weighted with a view to enjoying diversification benefits and managing risk