We seek the best quality growth companies in Europe – businesses with differentiated products and economic moats that command pricing power. These companies can generate high and sustainable returns enabling them to invest excess cash in long-term growth and maintaining their competitive advantages, in this way compounding shareholder value.

We focus on fundamental research to unearth these companies — particularly those exposed to long-term secular trends that can transcend business cycles and short-term market challenges. An example of a quality growth company that we hold in our European smaller companies strategy is Carel Industries, a global leader in heating, ventilation and air conditioning and refrigeration (HVAC/R) for industrial, commercial, and residential buildings. Carel makes products including programmable controls, heat exchangers, humidifiers, valves, speed controls and sensors.

Competitive advantage: Research, engineering and technological excellence has led to leadership in market niches around energy efficiency. Carel can tailor and “design in’’ solutions for customers, which generates customer loyalty and pricing power.

Factbox: Over 70% of Carel’s top customers have been with the company for 10 years. Carel has 60% of the European rooftop control market (these units produce hot and cold air for commercial buildings).

Secular growth: We see Carel benefiting from secular growth trends including:
  • Energy Efficiency: Carel heat pumps and HVAC/R controls help to reduce carbon emissions and energy consumption, and its products improve indoor air quality, which was vital during the Covid-19 pandemic
  • Digitalisation, the company leverages IoT (Internet of Things) and AI to offer connected solutions and services

We believe that Carel has an attractive long-term growth trajectory. The company doubled its revenues from 2018 to 2022.
performance chart
Source: Bloomberg as at 14/12/2023

Please note: Company example is for illustrative purposes only and is not a recommendation to buy or sell.

The value of active minds: independent thinking

A key feature of Jupiter’s investment approach is that we eschew the adoption of a house view, instead preferring to allow our specialist fund managers to formulate their own opinions on their asset class. As a result, it should be noted that any views expressed – including on matters relating to environmental, social and governance considerations – are those of the author(s), and may differ from views held by other Jupiter investment professionals 

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This communication is intended for investment professionals* and is not for the use or benefit of other persons, including retail investors.


This document is for informational purposes only and is not investment advice.


The views expressed are those of the Fund Managers at the time of writing and are not necessarily those of Jupiter as a whole and may be subject to change. This is particularly true during periods of rapidly changing market circumstances. Holding examples are for illustrative purposes only and are not a recommendation to buy or sell. Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.


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