Caption: European focus fund facts

Kickstart your morning on day 4 with 6 quick interesting facts about the European Focus Fund!

  • Since its inception in August 2014, European Focus has only made 50 completed investments (bought then sold).

  • 5 of the original stocks have been held in the Portfolio since the launch of the Fund in August 2014: Coloplast, Dassault Systèmes, EssilorLuxottica, Lindt & Sprüngli and L’Oréal.

  • The number of European Focus Universe companies varies but tends to be in the range of 35-45. The universe is regularly tested to ascertain that the outperformance ratio is high. THE strategy lives by the mantra: ‘If it ain’t broke, don’t fix it.’ THIS means that if the Universe is performing well, don’t change it – if it is not performing well, then we look to make well considered amendments.

  • The long-term outperformance ratio of the European Universe companies against the benchmark (MSCI Europe Net EUR) index has been in the 55-65% range when all stocks are converted to EUR from their base-denomination. In other words, European Focus seeks a ‘fish-rich’ pond.

  • In order to keep the Fund’s Investment Universe vibrant, the strategy aims to add one new Universe company per year and eliminate one per year over time. Since the inception of the Fund in August 2014, 7 companies have left the European universe: Adecco, Capita, Gemalto, H&M, Inditex, Reckitt Benckiser, and Serco; while 5 new companies have been added to the European universe since after the inception of the Fund: Adyen, ASML, Givaudan, Lonza, Tomra.

  • European Focus’ investment strategy adheres to the discipline that a focused fund, with the aim to invest in businesses which are highly focused on a core competence not be ‘jack-of-all-trades’, such as industrial conglomerates. In other words, European Focus limit its investments to only focused businesses which have primarily one core competence.

Make sure to follow the Heptagon Capital LinkedIn to find out more about the European Focus Fund.

For more information about the European Focus Fund and its other holding, click here.

The is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. This is not intended to be construed as investment research. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.

Disclaimers

The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital LLP believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital LLP, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital LLP is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital LLP disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document. 

The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital LLP’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital LLP’s prior written consent. 

Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
email [email protected] 

Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority 

Heptagon Capital Limited is licenced to conduct investment services by the Malta Financial Services Authority.

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