Ten years from its launch, Generali Investments SICAV (GIS) Euro Equity Mid Cap changes its name to GIS Euro Future Leaders...
Eric Biassette, Head of Thematic Equity at Generali Investments and portfolio manager of GIS Euro Future Leaders
A robust process, high convictions and careful stock-picking delivered very good returns over the period, despite a challenging environment
Generali Investments, the main asset manager of the Generali Group, announces a name change for the Generali Investments SICAV (GIS) Euro Equity Mid Cap. The new denomination of the sub-fund, GIS Euro Future Leaders, reflects its objective and investment philosophy: to identify and invest in Euro zone companies offering the most interesting growth prospects, with the right valuation. The future leaders in their markets.
Eric Biassette, Head of Thematic Equity at Generali Investments and portfolio manager of GIS Euro Future Leaders since its launch, said: “Looking back at the last ten years, we most certainly had to steer through some very challenging and unprecedented market conditions. Despite these, the sub-fund was still able to deliver good returns, a testament to the quality of our investment process.” ***
While investors often favour mid-capitalization companies at the beginning of expansion phases, they are actually less dependent from macroeconomic conditions and market cycles than large-caps, and much more from their ability to execute their own strategy instead. Furthermore, they tend to display better earnings per share growth figures, with average lower volatility levels.
This said, their dynamics can be complex, and as they do often have a very domestic focus, it is fundamental to have a deep knowledge of both the companies themselves and the environment in which they operate.
The investment strategy of GIS Euro Future Leaders takes all these factors into account, and it is based on a robust stock-picking process focusing on companies with a proven track-record, clear and predictable business models, and the potential to become large-caps in their own sectors. Equally important is their ability to generate cash over time: analysing Free Cash Flow is key, while meetings with their top management allow a better understanding of their intentions when it comes to using the generated cash.
The team then uses its valuation model and inputs to determine a target price for every single stock, selecting the ones with a significant potential increase in their value over the next 3 years. The resulting portfolio of 60-70 high conviction stocks will typically have a low turn-over, the portfolio manager reducing or selling a stock company once the target price has been reached; when no further relative potential is expected, or when the investment case has changed.
Eric Biassette joined Generali Investments in 2000, as fund manager in charge of small & mid cap investments. Prior to that, he spent ten years at ING-Barings as a sell-side financial analyst. A member of the Société Française des Analystes Financiers, he holds a Degree in Engineering Science from the National Institute of Agronomy Paris-Grignon, and a Master in Finance from Paris-IX-Dauphine.