1. Newsroom
  2. Active in small caps
Menu
Insight 24.05.2017

Active in small caps

Active in small caps

Opportunities through selected regional exposure


Key points

  • Small and mid-cap companies often demonstrate strong growth potential, notably where they sustain high level of innovation, which is the foundation for maintaining these higher growth rates.
  • The segment tends to be less covered by the analysts' community and dedicated portfolio managers can add value by detecting hidden gems through the investment universe.
  • Investing in small and mid-caps means believing in the entrepreneurial mind-set, aligning with the founding partner’s drive.
  • As an Active Manager, UBP has dedicated substantial resources to this segment, covering three of the largest markets.
  • We believe that a well balanced portfolio should opt in a long-term allocation to the small-and-mid caps segment.
  • The change in U.S. corporate tax regime would be very supportive for small and mid-caps, which tend to be more impacted than large caps.
  • Swiss Small & Mid Caps' international exposure and high CFROIs offer a quality investment opportunity, globally.

The global picture for equities has been rather positive so far this year, with equity markets benefitting from accelerated earnings growth. Since the beginning of 2017, with EPS growth estimates at 13% compared to 2% in 2016, global equity markets have started to show signs of a rebound. This recovery theme was supported by expectations of future investments in infrastructure and manufacturing, resulting from market anticipations of the "Trump trade".

Consequently, we have also seen positive performances in small and mid-caps, though diverging within regional markets, between the U.S., Europe and Switzerland. We would like to highlight why small and mid-caps are an appealing investment case, how UBP has tackled this dynamic asset class and what our preferences are in this market.

Read the White Paper

SOUSSAN Benjamin 150x150.jpg

Benjamin Soussan
Investment Specialist

EYSSAUTIER Jean-Luc 150x150.jpg

Jean-Luc Eyssautier
Investment Specialist

LE BERRE Cedric 150x150.jpg

Cédric Le Berre
Investment Specialist

WATCH OUT FOR THE REPLAY

REPLAY - Web conference on small and mid caps

With Charles Anniss, Cédric Le Berre and Benjamin Soussan.

Watch the replay
Newsletter

Sign up to receive UBP’s latest news & investment insights directly in your inbox

Click and enter your email address to subscribe

Expertise

Impact investing - Creating the future now

The role of impact investing is to strive to solve the world’s most pressing problems by identifying compelling long-term investments.

Read more

Most read

Insight 15.10.2018

Global Equities: P/E de-rating in progress

Spotlight - The broad-based sell-off in global equities has fully retraced the gains made from February 2018’s lows. Even world beating technology shares have fully given up the 8% gains seen over the summer.

Insight 08.10.2018

The latest on the oil market

September saw WTI oil prices drop 4% during the first week of the month before rallying almost 12% to reach USD 75 per barrel at the beginning of October. The rally came as investors have been gauging OPEC’s ability to replace falling Iranian exports and declining Venezuelan production.
Insight 25.09.2018

US-China Trade War

Spotlight - From Checkers To Chess


Further reading

Insight 17.10.2018

Impact investing - Creating the future now

The role of impact investing is to strive to solve the world’s most pressing problems by identifying compelling long-term investments.

Insight 17.10.2018

Impact investing - Shaping tomorrow

Impact investing can help shape a healthier and brighter future.

Insight 15.10.2018

Global Equities: P/E de-rating in progress

Spotlight - The broad-based sell-off in global equities has fully retraced the gains made from February 2018’s lows. Even world beating technology shares have fully given up the 8% gains seen over the summer.