European markets have been turbulent because of the region’s proximity to the war in Ukraine and economic links with Russia.
European equity markets are still struggling to overcome the effects of the pandemic. But diligent investors can find surprising investment candidates.
European investors were recently reminded how tricky it is to evaluate a company’s environmental, social and governance (ESG) credentials. Tesla’s plans to chop down a forest to build a manufacturing facility for electric cars in Germany reinforced the need for independent research and engagement to assess the risks and opportunities created by ESG controversies.
Investors often ask how it’s possible to allocate capital to European stocks given the political risks that abound. We think the answer is to combine disciplined stock picking with risk-management tools that look for unintended threats to a portfolio.
With Brexit headlines dominating the European news, equity investors face an ongoing challenge. Building resilient portfolios requires a clear view of the long-term outlook for European companies that also reflects major short-term political uncertainties.
Value stocks have underperformed for years. But things may be changing. Cheaper stocks have shown signs of awakening recently, and several market forces could tip the scales in favor of value after a prolonged growth surge.
This letter has been a long time coming. It’s time for us to talk. Buyout funds are at your doorstep.
Private equity funds continue to attract interest, despite rising deal valuations and high levels of leverage. We think there’s a way to get many of the benefits of private equity in public markets—without forfeiting liquidity.
After a record 2017, private equity funds have $1 trillion to deploy. The Financial Times reported this week that the buyout industry is raising more money than it can spend. As new risks surface, we think public equity portfolios with the right strategic mindset can deliver similar benefits to investors.
Solid economic growth and receding political risk continue to support sentiment towards European equities, despite the recent market pullback. As market conditions shift, a selective focus on companies with underestimated profitability is essential for investment success.
Investors in European stocks are facing multiple sources of risk. Applying the mindset of strategic business owners can help tune out the noise and sharpen investors’ focus on more resilient sources of return potential.
Risk appetite has returned to European equity markets. Is there a way to capture the rally of value stocks while mitigating risks across an unsettled region? Focusing on cash flows can make the difference.
European value stocks have rallied recently. But identifying cheap stocks with recovery potential is still extremely difficult. It’s time to consider new approaches to discover attractively valued equity opportunities across Europe’s complex market landscape.
