EV MICRO COMPANIES GROWTH FUND
The EV Micro Companies Growth Fund is a ‘long-only’ equity fund with the following main features:
- investing in shares of listed companies with a small market capitalization;
- with a geographic focus on Dutch, Belgian and German companies;
- which offer attractive growth potential for the long term (megatrends); and
- by means of a concentrated equity portfolio with a maximum of 20 holdings.
The EV Micro Companies Growth Fund invests in shares of small listed companies (with a market capitalization of less than € 500 million), so-called ‘micro caps’. Micro caps are an extremely interesting investment category. This segment is not or hardly followed by analysts, which means conducting thorough own research provides surprising investment opportunities. This segment is characterized by a relative high level of mergers & acquisitions activity.
The fund manager looks at both qualitative and quantitative aspects of a company. Qualitative aspects include an assessment of whether the company’s activities fit within the selected megatrends and whether the company has growth potential. The strategy of the company and the quality of the management are an important part of this. For quantitative aspects, the fund manager estimates the future financial development of a company on the basis of a quantitative model.