Five under-the-radar European growth gems

Five growth gems

Martin Todd, co-manager of the £528m Hermes Sourcecap European Alpha fund alongside James Rutherford, explains it is possible to find long-term growth stories in a "triple-zero economy" like the eurozone.

European equities have been in a sweet spot so far in 2015, with the asset class supported by a number of tailwinds - such as the falling euro, lower oil price and the implementation of QE. What we are seeing at company level is positive, with 55% of companies so far meeting or beating forecasts during the current European earnings season. However, in a ‘triple-zero' economy we have in the eurozone - zero growth, zero rates and zero inflation - growth is a scarce asset and companies able to deliver it should command a much higher premium. In this environment, we prefer structural g...