BNP AM

The sustainable investor for a changing world

Europe Small Cap Strategy

Key features

A high conviction portfolio primarily of European small cap stocks

Managed by an experienced team dedicated to European small caps

ESG1 factors integrated within the investment process

Investment philosophy 

We believe European small caps are often underestimated and under-researched, which creates compelling investment opportunities. We seek to capitalise on these opportunities using an approach that combines growth and value, and by paying special attention to the specific risks of small cap equities such as financial discipline, management track record, and balance sheet risks.

Investment process

Our Europe Small Cap Strategy follows a disciplined and repeatable process:

  • Idea generation
  • Stock selection
  • Portfolio construction and risk management

Team and resources

Our European Mid/Small Cap Equity team is based in Paris. Damien Kohler, who has more than 30 years of industry experience, leads the team. 

The team consists of portfolio managers, research analysts, and investment specialists with expertise across different sectors and countries. They benefit from access to our global trading and risk management platform, Sustainability Centre, Quantitative Research Group, and Macro Research team.

[1] ESG = Environmental, Social and Governance. ESG assessments are based on BNP Paribas Asset Management’s proprietary methodology which integrates all three aspects of E, S & G.
  • Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Past performance or achievement is not indicative of current or future performance. Performances is calculated net of fees unless otherwise stated.
  • Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This material does not constitute investment advice.
 
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
References to the Strategy relate to the investment approach and process applied to the flagship BNP Paribas Sub-fund. The Sub-fund in question may not be available to investors in certain jurisdictions. Visit www.bnpparibas-am.com for more information.
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund's) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.