“A baptism of fire” is how Will Searle, manager of the Dowgate Wealth European Growth fund, which launched in March 2022, sums up the first 12 months of his portfolio.
While a higher weighting to small caps and being underweight in energy have meant the portfolio has lagged its benchmark in its first year, Searle told MA Financial Media content editor Adam Lewis, investors should be buying European growth on a multi-year view – not on one of three or even 12 months.
“This period of uncertainty is a great time to be investing,” he argues. “There is not just value and growth – there are a lot of shades of grey in-between. This is important because a lot of growth companies that are not necessarily on high growth ratings have been unfairly penalised because they are classed as growth stocks. Now is a great time to find entry points into some of these companies.”
Portfolio positioning
Despite the challenges of the first 12 months, Searle says he was very mindful not to style-drift but remain focused on a strategy that has worked well in the past. The best investment opportunities are with company management teams “who have been laying the groundwork for the next phase of growth,” he adds.
You can view the whole video by clicking on the picture above, while the timecodes for each question are set below:
00.18 Why is now a good time to be investing in European growth?
01.25 How challenging have the last 12 months been as a growth investor?
02.43 Where are you currently seeing the best investment opportunities in Europe?
03.43 Why is there a hesitancy among UK investors to invest in Europe?
04.34 What differentiates your fund from those of your peers?
05.46 Looking ahead, how do you see the prospects for Europe?
