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Despite a challenging backdrop for Europe, investing in its best companies should reap rewards
Thursday 17 Mar 2022 Author: Martin Gamble

Heptagon European Focus Equity Fund (BPT3468) £203.48

Loss to date: 18%

Original entry point: Buy at £248.02, 12 August 2021

Heptagon European Focus Equity Fund (BPT3468) has a well-defined investment process with a preference for high quality growth companies. Importantly, manager Christian Diebitsch believes they continue to deliver on expectations.However, the fund has disappointed recently due to exposure to growth and technology stocks which are currently out of favour.

Diebitsch isn’t interesting in gravitating towards areas of the market which are performing because of rising inflation and interest rates. His approach is to steer clear of low growth, capital intensive, mature companies which don’t offer the growth he desires.

The disciplined approach was vindicated by recent full year results from several companies in the portfolio which he said produced ‘excellent’ growth and outperformed market expectations.

Diebitsch said these companies increased their outlook for growth in 2022 prompting analysts to upgrade their earnings forecasts.

SHARES SAYS: The fund is ahead of its benchmark over one year and comfortably ahead over longer periods. It remains a great way to get exposure to Europe’s best companies. Stay positive. 

DISCLAIMER: Editor Daniel Coatsworth has a personal investment in Heptagon European Focus

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