Smaller European companies with a global reach
Europe is one of the world’s key economic regions and is home to many businesses that are world leaders in their field, including among smaller companies.
Jupiter’s Pan European Smaller Companies fund gives investors access to a concentrated portfolio of the highest-quality smaller companies listed or headquartered in Europe. These companies are European by heritage, but their footprint is global for the most part.
The fund is managed by Mark Heslop, a highly experienced investor in European equities, with a proven track record of smaller company investing. Mark and the team follow a disciplined and iterative investment process resulting in a constant competition for the fund’s capital.
Applying Porter’s Five Forces, the business strategy tool developed by Harvard professor Michael Porter, Mark and the team assess a company’s value based on its long-term cash flow potential and weigh this up with their conviction in the business model and its growth potential. This approach allows the strategy to constantly remain focused on what the team deems the ‘best ideas in Europe’.
The fund management team have the freedom to seek only the best quality European smaller companies on behalf of the fund’s investors. Mark and his team are committed to deep analysis of business fundamentals, seeking hidden gems that are underappreciated and often poorly covered by the market. They avoid businesses that do not have a differentiated offering, are heavily regulated or have inappropriately high levels of debt. The result is a well-spread yet focused fund of some 50–60 holdings carefully selected from a universe of around 1,500 investible companies.
High-quality franchises with a growth focus
Through bottom-up stock selection the team aims to find companies with high barriers to entry and the potential to deliver high and sustainable returns on invested capital. They also want to invest in companies that can benefit from market inefficiencies and are well placed to benefit from secular growth opportunities. Finally, the presence of a strong company management team whose interests are aligned with shareholders is key.
Sources of sustainable competitive advantage
Mark and his team target investments in businesses where they have identified sustainable competitive advantage(s) and attractive industry economics. They invest in these companies and allow the economics of the business to create a compounding effect over the long term. It is this long-term compounding of capital being ploughed back into a business at a high rate of return that helps drive the growth in value of a business and deliver attractive long-term growth for its investors.
A wealth of experience
Clients may benefit from Mark’s long and high-quality track record running European and global smaller company strategies. He has a tried and tested approach that is enhanced by his ability to draw on a range of expert investment knowledge and resources at Jupiter.
Meet the team
Jupiter European Smaller Companies Team
Mark Heslop Jupiter in September 2019 as a European equity manager and smaller companies specialist. Prior to joining Jupiter, Mark was an equity fund manager at Colombia Threadneedle for 11 years where he managed a global smaller companies fund and a European smaller companies fund. He began his investment career as a chemicals and industrials analyst at Citi in 1999.
Mark is joined in Jupiter’s wider European equities team by colleagues Mark Nichols (Fund Manager), Sohil Chotai (Assistant Fund Manager), and Greg Herbert (Fund Manager).
Key Fund Literature
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Note from the Investment Floor - ‘Leverage, Momentum and Narrative’
Systematic equities Q1 review
Notes from the Investment Floor - Diversification is key to green bonds
Market and exchange rate movements can cause the value of an investment to fall as well as rise, and you may get back less than originally invested. The fund invests in smaller companies, which can be less liquid than investments in larger companies and can have fewer resources than larger companies to cope with unexpected adverse events. As such price fluctuations may have a greater impact on the fund. In difficult market conditions, it may be harder for the manager to sell assets at the quoted price, which could have a negative impact on performance. This fund can invest more than 35% of its value in securities issued or guaranteed by an EEA state.