European Capital Partners - A matter of concentration Discover this fund | European Capital Partners
Asset management and fund structuring boutique

A matter of concentration

Jul 19, 2024

In 1989, at the peak of Japan’s economic bubble, the country represented 12% of the global GDP yet commanded 48% of the global market cap. Today, the US accounts for 18% of global GDP but dominates with 70% of the global market cap. Remarkably, the top 15 stocks in the US have a higher market cap than all the Europe stocks or all the companies in Emerging Markets and Japan.

At ECP, we mitigate concentration risk by diversifying our portfolios, ensuring we are not overly dependent on the US or a handful of Big Tech names.

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