EI Sturdza Investment Funds, the independent investment fund firm with $2.7bn in assets under management, has announced the launch of the EI Sturdza Strategic European Smaller Companies fund.
The fund will be managed by Bertrand Faure and his team of European equity investment experts
The new fund will hold a concentrated portfolio of 20 to 30 investments selected from a universe of about 2,000 Western European SMEs. Key targets in this universe will be companies that are deemed to be priced “significantly below their intrinsic value”.
Bottom up stockpicking will determine holdings rather than top down factors. Portfolio holdings will include companies with proven management teams, defendable market share, pricing power and strong cash flow as well as high ROE.
Companies selected will have a maximum market capitalisation value of some €5bn.
Georges Gutmans, managing director, EI Sturdza Investment Funds, said: “We are pleased to offer the EI Sturdza Strategic European Smaller Companies fund to our client base and extend our product line-up. Bertrand Faure has been managing European equities since 2002 and has a tremendous experience and understanding of the European small and medium capitalisation investment universe.”
Faure added: “As investment adviser of the fund, we are extremely excited about the opportunity to deploy our long-term investment philosophy with EI Sturdza. Over the past 13 years, all our efforts have been dedicated towards the Western European small and medium capitalisation universe. A significant goodwill was built in that investment space, structurally under-researched, very broad in terms of industrial coverages and constantly nourished by new opportunities.”
The fund is registered for sale in France, Switzerland and the UK. Plans are in place to offer it in other European jurisdictions.