European equities

European equities

Contact us

Any enquiries or questions in regard to the products can be directed to:

Atilla Olesen
Global Head of Asset Management Distribution

Parallelvej 17
DK-2800 Kgs. Lyngby
Tel.: (+45) 45 13 97 62

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European Equities Alpha

The European Equities Alpha strategy is a fundamental bottom-up equity strategy focused on keeping risks at reasonable levels. The performance target for the product is 1.5-3% with a target tracking error of 3-6% and 50-70 holdings.

Position sizes are determined by conviction, risk contribution, and relative exposure. A fundamental understanding of the company is a prerequisite before investing and new stock ideas are typically viewed in a 3-5 year investment horizon, consistent with historic portfolio turnover of around 20%. An important part of the investment decision is to understand the risk characteristics of the stocks in question and its contribution to the portfolio’s overall risk. An integral part of this is to understand the interaction between portfolio companies, i.e. whether the stocks are exposed to common risk factors.

 

European Equities Stockpicking

The European Equities Stockpicking strategy is a fundamental bottom-up equity strategy with focus on individual stocks, and long-term thinking guides our approach to equities. The performance target is 4-5% with a tracking error of max. 8% and 30-35 holdings.

The team has a structured approach to stock selection with a clear tilt towards well-managed companies fulfilling a set of quality criteria. The process is fundamentally driven and focused on Quality, Delta and Valuation and the dynamic between the three. This approach is rather simple but at the same time strict in terms of identifying the value drivers, the price, and most importantly the quality we are searching for. Quality is the portfolio "gatekeeper" and in our search for quality we are rigorously looking for strong business models with managements able to execute and thereby creating free cash flow and growth opportunities.

 

European Equities Small Cap

The European Equities Small Cap strategy is a fundamental bottom-up equity strategy aiming at  outperforming the market over the long term irrespective of market conditions. Focus on individual stocks and long-term thinking guides our approach to equities. The performance target is 4-5% with a tracking error of 5-8% and 30-35 holdings and a market cap below 5 billion EUR.

The team has a structured approach to stock selection with a clear tilt towards well-managed companies fulfilling a set of quality criteria. The process is fundamentally driven and focused on Quality, Delta and Valuation and the dynamic between the three. This approach is rather simple but at the same time strict in terms of identifying the value drivers, the price, and most importantly the quality we are searching for. Quality is the portfolio “Gatekeeper” and in our search for quality we are rigorously looking for strong business models with managements able to execute and thereby creating free cash flow and growth opportunities.

 

European Equities High Dividend

The European Equities High Dividend strategy is a fundamental bottom-up equity strategy with focus on Medium to long-term investment horizon and a low turnover. The long term performance target for the product is 3% with a tracking error of 3-6% and 30-50 holdings, although typically around 35.

The strategy aims to deliver a stable return portfolio, and it is therefore important for us to gain relative performance in weak, negative markets. We have a high focus on protecting the portfolio in falling markets and we are satisfied when we follow the market up in positive periods. To deliver a relatively stable return we believe that the higher the tracking error, the better as this is necessary to deliver a less market-dependent return.

The High Dividend strategy invests in companies characterised by an attractive combination of high dividend yields, high profitability and low stock valuation combined with a preference for companies undergoing positive changes. We believe this combination provides an attractive return potential and lower risk.