European Small-caps

There are three criteria for investment:

companies must display quality credentials that allow them to generate sustainably high returns on capital employed. Reinvesting at high returns drives economic value and share price performance;
companies must clearly demonstrate how ESG considerations are embedded in their business strategy. Every company faces material ESG risks that can have a direct impact on long-term share price performance; and
there must be an investment case. A quality company that embeds ESG is only a good investment where a valuation opportunity exists

We believe that the market is short-term focused and often misprices the compounding nature of quality companies. We take advantage of this through our long-term investment horizon of 3-5+ years. We run high conviction portfolios of 30-50 companies, where each position has a meaningful impact, without a tail of insignificant holdings.

We screen the investible universe on quality metrics and then undertake rigorous bottom-up research. Our team-based approach ensures that every investment is thoroughly challenged, while our ESG research is independently validated by an external consultant.

We have been successfully investing in European small-caps for twenty years, and running our Sustainable European Small-cap Strategy for fifteen.

Other small-cap strategies:

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News & Knowledge

2019, 18 June

Kempen European Private Equity Fund reaches over €120 million after second closing

Amsterdam, 18 June 2019. The private equity fund of Kempen Capital Management (Kempen), the Kempen European Private Equity Fund, has raised over €45 million in the second closing on 14 June 2019. Following the second closing, the fund has a fund size of more than €120 million.

2019, 17 June

Asset Allocation update June

In the wake of a correction in May in which the prices of equities from industrialised countries lost over 5% and emerging market equities fell by nearly 10%, markets breathed a sigh of relief at the start of June. The growing willingness of the US central bank to cut interest rates helped the equity markets regain their footing, while the deal the US agreed with Mexico to tackle the refugee crisis, prompting the US not to impose higher import tariffs after all, also improved sentiment on the equity markets.

Salomons' Judgement

Is ‘elephant man’ Branko Milanovic right? Is too much inequality disastrous for democracy and does it create an static upper class?