Including small and mid-cap European equity funds in the portfolio can provide diversified exposure to companies with high growth potential. Each of these funds that we are going to explain follows a rigorous investment process, focused on the selection of companies with solid fundamentals and sustainable growth prospects. The combination of fundamental analysis, a bottom-up approach, and the experience of the management team in each fund allows us to identify and take advantage of opportunities in the European market, providing long-term value to investors.
These funds not only offer the potential for attractive returns (all performing above their index and in the top quartiles), but also add a layer of diversification and resilience to the portfolio, which is crucial in the current investment environment.
Fidelity Nordic
Fidelity Nordic focuses on investing in small and mid-cap companies in the Nordic countries. Its investment strategy combines fundamental analysis with a bottom-up approach, selecting companies with strong growth potential and sustainable competitive advantage. The fund identifies companies with attractive valuations, solid financial fundamentals and cash flow generation capacity. In addition, the fund benefits from the economic dynamism of the Nordic countries, characterized by political and economic stability, as well as a strong culture of innovation.
The fund has demonstrated a remarkable ability to generate alpha, especially in sectors such as technology, healthcare and renewable energy. The combination of established companies with innovative startups provides a perfect balance between stability and growth. In fact, it stands out from the rest of the funds and from its index. On the contrary, let us remember the concentration in the Nordic countries.
Cobas Iberia
Cobas Iberia specialises in investing in small and mid-cap companies in the Iberian Peninsula. The investment strategy is based on a value approach, seeking undervalued companies that are trading at a price below their intrinsic value. The management team performs an analysis of each company, evaluating its business model, management team, and competitive position in the market. Companies with a solid capacity to generate income and long-term recovery potential are prioritised, building a concentrated and high-conviction portfolio.
The fund has taken advantage of the economic recovery in the Iberian region, investing in key sectors such as consumer, industrial and financial services. The high conviction strategy allows a concentration on the best investment ideas, thus maximising the return potential.
Solventis Aura Iberian Equity
Solventis Aura Iberian Equity invests in small and mid-cap companies in Spain and Portugal. The investment strategy combines quantitative and qualitative analysis, seeking companies with medium and long-term growth potential. The fund uses a bottom-up approach to identify companies with sustainable business models, good management, and a solid financial structure.
The fund has excelled in sectors such as technology, industrials and consumer goods, where innovation and rapid market adaptation are key. The stock selection strategy is based on a thorough assessment of ESG factors, adding an additional layer of sustainability and responsibility to the investments.
Spain Mutual Fund
Mutuafondo España focuses on investing in small and mid-cap companies in Spain. The fund seeks companies with good management and potential for long-term value generation, building a diversified portfolio that balances risk and return. Sector diversification and active management allow for adaptability to changing market conditions.
This fund, as well as the two previous ones we mentioned, have a fundamental exposure in Spain and Portugal, but they are funds that stand out within the European region. That is also why they have greater weight in certain sectors, but they are still some of the best European small and mid-cap funds.
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