367. Patience, discipline and the hunt for undervalued growth

In this episode, we explore how European companies are responding to global headwinds, from tariffs and political unrest to slowing demand. Despite headlines often painting a bleak picture, many niche businesses are thriving by tapping into structural growth drivers. David Walton, manager of the IFSL Marlborough European Special Situations fund, discusses the resilience of smaller and micro-cap companies, highlighting standout performers in luxury jewellery and power tools, and considers how disciplined patience and off-the-beaten-track investing can deliver strong results.

What’s covered in this episode: 

• How uncertainty is impacting European companies differently
• Why smaller companies are beginning to outperform
• The importance of sector selection
• Finding sub-sectors with unique growth drivers
• Examples of standout holdings within the fund
• Uncovering hidden value in overlooked businesses
• The role of meeting management teams and hands-on research
• How to manage underperforming holdings 
• Current risks and opportunities in European equities
• Why negative headlines can create attractive entry points

More about the fund:

IFSL Marlborough European Special Situations fund offers access to much smaller companies than many of its peers. These businesses are often overlooked and hence have the potential to outperform. We consider the team an expert in small-cap investing, having built a stellar track record in this space, and the manager of this fund has been very successful at mitigating the risks that are typically associated with smaller companies.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.