We seek to outperform the MSCI EMU index over a three to five year market cycle by investing in Euroland equity securities that we consider undervalued relative to their growth potential.
We believe that stocks are not fairly valued at all times and that certain stocks whose price to cash earnings ratios are low relative to their long-term growth rates will produce superior investment returns.
Our investment process begins by screening the universe of European companies participating in the Euro with a market capitalization of at least $1 billion. We conduct qualitative and quantitative analysis on both companies and their relevant industries. Starting with a Price/Cash Earnings to Growth screening, our initial analysis also assesses the impact of currency and other macroeconomic variables on the company’s fundamentals. Detailed company and industry analysis, visits with company management, and evaluation of political, economic and currency risks narrows the list of attractive stocks. Finally, we look for catalysts that help us determine the appropriate level of confidence in the companies’ growth and justify long-term investment. Such catalysts may include: the introduction of a new product, a corporate rationalization/restructuring, or participation in new markets. The best ideas with the highest level of conviction are purchased for the portfolio.
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| Other International Equity Strategies | |
