CHOM HCE

CHOM CAPITAL HIGH CONVICTION EUROPE UI

Investment approach

The CHOM HCE fund focuses on listed European small caps. The investment concept also includes a safety net to stabilize returns.

When looking for the right companies to invest in, our portfolio managers are not tied to any country or sector affiliation. They focus their attention on identifying clearly defined business models and very “pure” value drivers.

The fund’s safety net is made up of several components including flexible cash management, the use of standard hedging instruments as well as investments in other asset classes such as bonds or commodities. Allocation and weighting of the portfolio elements are adjusted flexibly and discretionarily and are tied to the market situation.

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“The aim of our investments is to deliver sustained outperformance for our investors."

- Oliver Schnatz, founder

Investment strategy

The European small cap investment universe is made up of more than 2,000 listed companies with a market capitalisation of EUR 100 million – EUR 3 billion.

Bearing in mind the liquidity restraints faced by small caps, our portfolio managers seek out fundamental value drivers in order pinpoint top quality companies that meet our demanding portfolio requirements. Such value drivers include steady growth of business sectors, changing trends in business models, new technologies or possible mispricing.

The next step is to analyse and filter these ideas more closely with the help of valuation techniques that use an income-based approach (DCF models, mulziple valuatio, peer group analyses) or intrinsic value methods (analysis of balance sheet quality).

After an in-depth assessment of the business model and extensive talks with senior company managers, a limited number of stocks are singled out to become part of the equity share within the CHOM HCE portfolio. In addition, the portfolio managers evaluate various macroeconomic and political determinants and appraise market sentiment in order to determine portfolio hedging needs.
Equities are the cornerstone of the portfolio, with further support coming from flexible additions of other asset classes and hedging mechanisms.

"Our investments are hand picked. We only invest in a company once we have fully understood their business model and are absolutely convinced of their management, quality, value and fundamental potential."

- Christoph Benner, founder

More Informationen about HCE

CHOM CAPITAL HIGH CONVICTION EUROPE UI

WKN: A2D KRM
ISIN: DE000A2DKRM6
Bloomberg: CHOMHCE