Aubrey CM's Bentley-Hamlyn: 'Off-piste' picks in 'overpriced' Europe

Going behind the 'three 15' selection model

Growth stocks in Europe are "overpriced", according to Aubrey Capital Management's Sharon Bentley-Hamyln, who said she has had to go "off-piste" when picking stocks for her European Conviction portfolio.

The fund manager and company director, who co-founded Aubrey alongside Andrew Dalrymple in 2006, adopts a strict initial quant screen that she refers to as the "three 15" model; all holdings in the fund must be able to produce a 15% return on equity, a 15% cashflow return on assets and an earnings-per-share growth of 15% per annum. She will also pay no more than 1.5x price-to-earnings for any holding. Identifying 'Europe's few global champions' "This screen alone shrinks the universe enormously in terms of what we can and cannot invest in," Bentley-Hamyln said.  "In Europe, grow...