Geoffroy Goenen

Geoffroy Goenen, Head of Funda mental European Equity, and Pierre Longueville , Head of Derivatives, explain how their team takes a very dif ferent approach, investing in a portfolio of high quality stocks based on rigorous fundamental analysis and then applying two different techniques to minimise its volatility – and maximise its risk adjusted return.

Despite a fairly significant rally beginning in October, European equity markets, battered by major outflows since the start of the crisis in Ukraine, recorded a correction over the year 2022 (-9.5%). Although European equities finished the year on a relative outperformance compared with the United States (-13.4%) and emerging markets (-15.1%)1, the year was still a source of concern for investors, who are now asking questions about what may arise in 2023.

Since the beginning of the year, the European market – like its peers - has suffered a severe correction. Market participants are watching out for the low point, the green light that will allow the market to reposition itself for the long term.

Innovation is the best corporate strategy for creating a sustainable competitive advantage and for driving future growth and proftability. Geoffroy Goenen, , Head of Fundamental European Equity, and Antoine Hamoir, , CFA Senior Fund Manager, believe that successful innovators have the ability to lead their industry, outclass the competi tion and exceed fnancial expectation

As expected, the rise in long yields has speared a strong style rotation – see our article published in November 2021. Investor appetite for value stocks, coupled with significant profit-taking on growth stocks, has led to “value” companies outperforming their “growth” peers by almost 12% in January 2022So where are we now? And is “value” becoming “overvalued”?