Spanish independent investment firm EDM has reported a return rate of 16.6% in its European equity strategy for the first half of the year.
The returns can be explained by the "excellent performance of the fund's first rate portfolio companies, which have a ROE of more than23%and low debt levels," said EDM in a note.
The company also said that its analysis team expects a double digit growth in income for its portfolio assets and a dividend yield of 2.3%.
EDM Strategy invests in a small group of European companies with high levels of capitalisation, following exhaustive fundamental analysis. It seeks profit traction via companies that have little exposure to the economic cycle.
The company also announced it had reinforced its convictions in some of the companies included in the portfolio like Grifols, Michelin, Melrose and Babcock despite the widespread pessimistic outlook prevailing in the market currently.