Objective: Seeking to identify companies undergoing change that is unrecognised or has been underestimated by the market, which will transform these businesses over the long-term.
"Our high-conviction stock selection exploits the power of change over the long term."
Why Hermes Europe ex-UK?
Change is systematically under-appreciated by investors. Most stock analysis is linear, but in reality we live in a non-linear world. As a consequence, change can lead to dramatic geometric expansions in stock valuations as changes persist for longer than most investors expect.
We take a bottom-up approach to investing, with stock selection the key driver to returns and the dominant source of relative portfolio risk. Our emphasis is on identifying companies or industries undergoing longer term structural change. Even when a stock decision has a strong thematic element, the fundamental qualities of the company take precedence, and stocks only enter the portfolio on their own merit.
Focus on long-term growth
Our high-conviction approach ensures that stocks are only bought when there are clear insights into factors that will generate positive change in the business and which will persist over time. Markets generally value companies in a short-term and linear fashion. We look for companies that can deliver long-term, compounding growth to their shareholders.
Video: Hermes Europe ex-UK - Investment Philosophy
1. Since inception on 8 August 2008 the Hermes Europe Ex-UK Strategy has outperformed the FTSE World Europe Ex UK Index by 3.48% on an annualised basis as at 31 December 2017. Performance shown is in EUR and is gross of fees. A full GIPS disclosure report is available on the latest strategy factsheet.
Past performance is not a reliable indicator of future results and targets are not guaranteed.