The Alken Small Cap Europe – a fund that puts minor minor in the spotlight (Photo: Freepik, Alexstudio)
The Alken Small Cap Europe (ISIN: LU0300834669) is an actively managed fund that invests in small and medium -sized European companies. The fund managed by Nicolas Walewski and Marc Festa relies on a concentrated portfolio of around 60 carefully selected titles. Management pursues an active stock picking approach that is focused on undervalued companies with solid growth potential. The goal is a clear outperformance compared to the MSCI Europe Small Cap Index.
Market environment: Why Small Caps are in focus again
European minor values have suffered from rising interest rates and a weak economy in recent years. But with the prospect of falling interest and more economic -friendly politics, the tide could turn. “The monetary loosening of money begins to reflect in the balance sheets of European companies,” explains fund manager Nicolas Walewski. While large US corporations are increasingly under pressure, the environment for European small and mid-caps improves significantly.
Fundamental strength and attractive reviews
A key factor for the fund is the historically high evaluation discount of European minor values compared to standard values. “This discrepancy is out of proportion to the quality of many small and medium -sized companies,” says Walewski. Many small caps have stable business models and are financially solid than in the past. In addition, they are often active in promising sectors such as digitization, energy transition or healthcare.
Convincing performance thanks to targeted title selection
In this demanding environment, the Alken Small Cap Europe has proven to be extremely resistant. At the end of March, the fund achieved a 12-month performance of 27 percent, while the comparison index only increased by 4 percent in the same period.
Investments in industrial and communication companies were particularly successful. For example, the fund benefited from the increasing defense expenditure in Europe early on, which among other things in strong price gains Rhine metal and the Renk group reflected. The VusionGroup, a leading provider of digital trade solutions, also convinced with high orders and rising margins. Also under the top titles: Zegona (communication), Energean Oil & Gas and Vallourec (both energy).
Flexible investment strategy and high independence
With a fund volume of around 325 million euros, management can act flexibly and benefit from market opportunities regardless of the MSCI Europe Small Cap Index. The largest weighting lies on companies from Germany, Italy and France, which are selected specifically due to their strong fundamental data.
Long -term success balance
Since its edition in June 2007, the fund has achieved considerable performance. The average annual return of the past 15 years is 12.18 percent, which corresponds to an overall return of 427 percent. These impressive numbers underline the strength of the active management approach and the ability of the fund to achieve attractive returns across different market phases.
Conclusion: A strong candidate for secondary investors
The Alken Small Cap Europe offers a promising option for investors who want to invest specifically in European small caps. Through active stick picking, a flexible strategy and convincing long -term performance, the fund can use attractive opportunities in a market segment that currently appears undervalued. With the expected recovery of the minor values, an investment could be worthwhile right now.
Disclaimer:
No investment advice. No call to buy or sell securities.