Sleeping beauty
Apr 04, 2024
Another one of the 6 investment themes we put forward in our Q2 house view is that valuations globally are high with however some under-valuated pockets in selective sectors and geographies. A good example of a region fallen totally into disgrace with investors is Europe. Since the financial crisis, never has the valuation discount of European stocks been as high compared to their US peers in terms of price-to-earnings ratio. In our European Value Fund we are invested in a number of quality companies trading below 10 times earnings with strong balance sheets and sustainable earnings power. The whole portfolio trades at 10.8 times forward earnings and carries a dividend yield of 3.8% ! It does not take much for such a portfolio to perform in the current environment of normalisation of interest rates. Please contact us directly for more information on our ECP House-view or our European Strategy.