Smaller companies have underperformed in recent years as large-cap companies have recorded outsized returns. Despite this trend, we believe that there are several examples of smaller companies in Europe that possess the right mix of quality characteristics and growth drivers to potentially deliver substantial returns over the long run. At Comgest, we aim to build our portfolios with quality companies with enduring competitive advantages, irrespective of their size or market capitalisation.

At Comgest, we see the parallels between surfing and our own quality growth investment approach. Just as experienced surfers may wait hours before paddling out into the water and selecting a wave, we typically conduct years of fundamental research to determine whether a company meets our quality growth criteria. Liudmila Strakodonskaya, ESG Analyst, and Xing Xu, ESG Analyst / Portfolio Manager, detail how environmental, social and governance (ESG) factors fit into our research, investment selection and portfolio management process, spanning from India to the United States.

US equity investors all suffer from information overload. The growing number of companies they can invest in grows every year, each vying for capital and with many promising to be the next big thing. In the fast-changing US market, discover why we choose to pass by the short-term hype and focus on our long-term investment strategy.