Stock-picker names UDG among overlooked ‘gems’

THULE roof racks and Jimmy Choo shoes may not seem to have much in common but both are essentials for fund manager Charles Anniss, who’s betting on undervalued European stocks outperforming this year.

Both are among the “under-covered gems” Anniss has added to the UBAM Europe Small Cap Equity Fund he started in December with about €45m under management for Union Bancaire Privee. Ireland’s UDG Healthcare as well as Datalogic are additional top stock picks, the fund manager said.

Attractive valuations, patchy sell-side coverage and more than 1,500 companies to choose from leave investors with ample opportunities to make gains this year, said Anniss. He focuses on companies valued between €200m and €5bn. The fund gained 5pc in the period to February 24 compared with 3.8pc for the MSCI Europe Small Cap NR Index.

Jimmy Choo shares are up 12pc this year, while Datalogic has gained 5.4pc. UDG is 3.4pc higher, and Thule up 1pc.

In an interview Anniss said investors often miss value in smaller stocks. “For the dedicated and patient stock picker it’s possible to find hidden gems with attractive business models and growth prospects that are under-appreciated by the market and, as such, offer attractive valuations.”

Meanwhile, an investment conference in Dublin said investors could gain from Donald Trump’s election if it leads to an increased private sector role in renewables and sustainable natural resources as US public sector funding is withdrawn, said Rob Meaney, a Mercer senior investment consultant, at the Mercer 2017 Investment Seminar in Dublin. More than 100 delegates attended the seminar.