ODDO BHF Active Small Cap
ODDO BHF Active Small Cap : Find out the market's hidden champions
European Small cap are an interesting asset class, according to our analysis :
• Small Caps have a potential higher growth profile than Large Caps : the primary advantage of investing in small cap stocks is significant upside growth potential that is unmatched by mature companies with large market capitalizations. Smaller companies often focus in niche product areas or operate in a single country. This means they can display some element of decoupling, to prosper even at times when the broader economic environment is difficult.
• Under-the-radar companies: Small caps tend to be covered by fewer analysts in comparison to their larger counterparts and, thus, are more likely to be mispriced, which could represent a stronger selection opportunity.
• Strong M&A potential
• Small caps can, however, be more volatile than large cap and less liquid and present a risk of capital loss potentially important. ODDO BHF AM’s has a strong historical expertise on European small cap equity with ODDO BHF Active Small cap. The head of the strategy is Guillaume Chieusse, who has more than 20 years of investment experience.
The management team invests in growth companies within promising themes and sectors, according to our analysis, based on the GARP (Growth at Reasonable Price) approach.
Investment decisions are based on a rigorous fundamental analysis and a proprietary momentum model. The goal of this approach is the objective to select companies that demonstrate a greater focus on innovation, higher growth and better fundamentals (higher return on equity, stronger balance sheet) than the benchmark, according to our analysis.
The fund is exposed in particular to a risk of capital loss. For more details about risks, please refer to the Key Investors Information Document.