European markets were incredibly cheap this time last year due to market weakness related to concerns around inflation and interest rates, exacerbated by fear about how the Ukrainian war would impact the European economy. We are now seeing some of this economic weakness confirmed with, for example, Germany in a technical recession and falling house prices in Sweden, but much of the bad news had already been discounted by the market.

We seek investments in growth and quality companies, and last year the market chose to forget about the long-term prospects of some of these businesses. We remained patient and retained our long-term focus. Europe has some great companies benefiting from powerful long-term structural themes and with attractive valuations, in my view.
Investing cycle
One of the biggest geopolitical them