‘Short-termism forces firms to sacrifice value'

It has been a tough few years for European managers, as the Continent has failed to recover from the blows dealt by the crash in 2008. This year, the pressures have escalated, with recession threatening in several eurozone states.

Stephen Paice (pictured) is the co-manager of Baillie Gifford’s European fund. The fund has coped well with the challenges facing investors in Europe, outperforming the Europe ex UK sector over three and five years. However, the last year has been tougher, with the fund returning -0.3% against a sector average of 0.7%. After his presentation at our Funds to Watch event, Paice told Investment Week why investors should not look at the European Central Bank to understand Europe, and why short-termism is still a problem in markets. How have you dealt with the challenges of investing in...