Search this website. You can use fund codes to locate specific funds

EUROPEAN ALPHA EQUITY

Aiming to achieve long-term capital appreciation by investing primarily in a diversified portfolio of equity and equity-related securities with a European bias (including Russia and Turkey) quoted or traded on Regulated Markets.

Image

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

James Rutherford

Head of European Equities

Truly active

Our high-conviction approach results in a portfolio with very different stock weightings to those of the benchmark, generating a consistently high active share.

Power of change

Markets behave as if change has a short-term and linear effect on a business. However, companies can see long-term, exponential outcomes. This mismatch creates an enduring market inefficiency.

Enduring quality growth

We look for companies with a persistent competitive advantage underpinned by franchise value, balance sheet strength and revenue generation, putting them in control of their own destiny.

Proven record

Portfolio manager James Rutherford has been managing European equity portfolios for more than 20 years. This experience has helped underpin the strategy's outperformance since inception1.

Investment approach

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 that 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.

  1. 1Since inception on 18 June 2007 the Hermes European Alpha Strategy has outperformed the FTSE All World Europe Index by 2.53% on an annualised basis as at 30 September 2018. 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.

Our Fund Finder

Team

No posts matching your criteria

Related Insights

Nusseibeh: there’s more than one side to any investment story
Beyond the US-China trade dispute and Brexit, long-term change is underway. What should investors focus on?
Webinar: how we seek growth opportunities across Europe
To find out more view the recording from our latest webinar with Tim Crockford.
Hermes establishes a footprint in continental Europe by opening offices in Frankfurt and Copenhagen
Hermes Investment Management, the €37.3 billion manager, has today announced that it has opened new offices in Germany and Denmark.
Amplified: Europe ex-UK – European equity landscape
European equities has been an asset class of many false dawns. Tim Crockford, Lead Portfolio Manager of the Hermes Europe ex-UK Equity Fund, discusses what is different this time, in particular looking at how he sees the market and what opportunities there are out there.

Sales Contacts

Jakob Nilsson,
Head of Business Development, Asia
Lin Chew,
Director - Business Development, Asia
Byung-Hoon Choi,
Director - Business Development, Asia
Tai Watanabe,
Manager - Business Development, Asia