The strategy is based on a disciplined bottom-up stock selection of attractive smaller companies (market capitalisation up to 1bn EUR) based in Europe. The decisive criteria are among others end markets with structural growth, high entry barriers and excellent management teams.
Diversified portfolio of 90-120 stocks
Use of information inefficiencies due to low coverage
Long-term investment horizon and low portfolio turnover
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Indexed performance
Performance in 12-month periods
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Top Holdings
Monthly market comment
Trump's US election victory triggered a US stock rally, while concerns about trade wars weighed on European and Asian markets. In November, the performance of the Berenberg European Micro Cap was positive both in absolute terms and relative to the benchmark. RaySearch Laboratorie's stock performed well with a 17% increase in sales and an improved margin of 21%. Similarly, Chemometec also benefited from 27% sales growth and an EBITDA margin of 54%. Nexus AG received a takeover bid at a premium of almost 50%, which boosted the share price. We then sold this position. By contrast, Addvise Group disappointed with its quarterly figures, as revenues fell short of expectations despite an increase in orders. SyntheticMR reported a decline in revenue due to organisational changes at its US subsidiary. NCAB's semiconductor business showed weakness and two more weak quarters were expected, although the market valuation already reflected many risks. Last month, we also opened an initial position in Intellego Technologies.
Portfolio Management
Peter Kraus
Peter Kraus has been Head of Small Cap Equities at Berenberg since October 2017. He began his career in 2000 as an equity analyst for a corporate finance consultancy in Munich before moving to Deka-Investment in Frankfurt in 2003. There he worked as an analyst for European Small Caps. In 2006 he joined Allianz Global Investors as Fund Manager for European Micro and Small/Mid Caps, where he contributed significantly to the success of the Small Cap team in the following years. Peter Kraus was responsible for the management of various European Small and Mid Cap funds as well as for the acquisition and management of international institutional mandates. He studied Business Administration at the University of Mannheim and is a CFA Charterholder.
Peter Kraus
Head of Small Cap Equities
Johann Abrahams
Johann Abrahams joined Berenberg as a Portfolio Manager in January 2020. Previously, he completed the Berenberg International Graduate Program with assignments in Sell-Side Equity Research, Equity sales, ECM, Syndicate, Quantitative and Discretionary Asset Management. Johann Abrahams holds a Bachelor of Science in Economics from the University of Mannheim, a Master in Finance and Economics from the London School of Economics and is a CFA Charterholder.
