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By Bart Geukens Gilles Lequeux, CEFA, Senior Portfolio Managers, Degroof Petercam Asset Management S.A.
In a previous article we discussed the attractiveness of the European small cap asset class. It is one of the few segments of the equity market in Europe where, in our view, you can enjoy a so-called double alpha: small caps outperform large caps over the long term while, given the inefficiencies of the universe, small cap managers have a bigger chance of outperforming their benchmark. In this article we aim to more specifically discuss the attractiveness of investing in European quality small caps as we manage a Quality focused Europe small cap fund.
The size effect was discovered in the early 80s by Banz, who found that in the US small cap...
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