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EUROZONE EQUITY

Aiming to achieve long-term capital appreciation by investing in a diversified portfolio of European equity securities primarily listed in the MSCI EMU Index or in a constituent country.

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Our high-conviction stock selection exploits the power of change over the long term.

Chi Chan

Lead Portfolio Manager, Eurozone

Investment approach

Eurozone is a mid-to-large-capitalisation eurozone equity strategy with strong emphasis on alpha generation over the long-term. A typical portfolio would usually consist of 30 to 60 high-conviction bottom-up ideas that are generated within a clear thematic framework. Technical and macro overlays are deployed which are complementary to our fundamental bottom-up approach to stock selection as companies operate in the real world and not a vacuum.

We analyse and value stocks in an absolute sense based on their own merits, as we feel that the benchmark is there to be beaten rather than clung to. This approach leads to a strategy with very high levels of conviction, with all stocks held for a clear and positive reason. The structure of the strategy in terms of stocks held, sector positioning and residual country exposure, therefore reflects the availability of good ideas and hence the number of names held will vary to reflect the prevailing economic and market conditions.

Past performance is not a reliable indicator of future results and targets are not guaranteed.

Team

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Chi Chan

Lead Manager, Hermes Eurozone

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Chi Chan joined the international business of Federated Hermes as an analyst in 2009 and is now lead portfolio manager of the Eurozone strategy. Prior to this, in early 2004 he joined Execution Limited as a senior telecoms analyst with lead responsibility for companies with an aggregate market cap in excess of €200bn and established a reputation for interesting and commercial analysis. Previously he was at Credit Suisse First Boston, initially supporting the inception of the global value-based research group (the predecessor to HOLT) before being recruited internally to join the highly-rated pan-European telecom team. Chi started his career at the financial services practice of Ernst & Young, where he qualified as a Chartered Accountant after graduating from University of Manchester Institute of Science and Technology (UMIST) in 1997 with a BSc in Clothing Engineering and Management.

James Rutherford

Head of European Equities and Lead Manager - European Alpha

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James Rutherford is Head of European Equities and lead portfolio manager of the European Alpha strategy. He is also co-portfolio manager for the Europe ex-UK, Eurozone, and Sustainable Europe strategies. He joined the international business of Federated Hermes in 2009 as Co-Head of Investment for Hermes Sourcecap, now European Equities at the international business of Federated Hermes.

James began his career at Fidelity as a pan-European research analyst, initially specialising in areas such as property, transportation, autos and media. In 1995 he became a pan-European portfolio manager and co-managed the UK Recovery Trust, which was ranked first in its peer group during that period. James was ultimately responsible for a $19bn portfolio of pan-European institutional funds, and he remained at Fidelity until 2006, when he co-founded Sourcecap with the aim of building a best-in-class investment boutique focused on excellence in European equity management. James graduated from the London School of Economics with a BSc in Theoretical Economics.

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Sales Contacts

Carlos Capela CFA, CAIA,
Director - Business Development Iberia
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[email protected]
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+ 44(0)207 680 2347