The return of the German SMID’s

A play on the German Mittelstand: the likely coalition between Merz and SPD as junior partner could get Germany out of the economic inertia. This could lead to a more growth-oriented agenda in Germany and address some structural issues in the economy. We believe one way to reflect this renewed hope is investing in Germany’s mid-sized and small companies, who have been strongly underperforming their large cap peers since 2022. On the listed side and through our European Value Fund, we are already invested in small/mid caps like Sixt, Jost Werke and Kion but are currently hunting for new investment ideas in the field.