Broad value-based European small cap funds fare better than growth-only

In the European small cap arena, there have been clear trends pushing the performance of funds. While manager skill obviously made a difference, the primary connecting factor between successful funds was that they took a broadly value-based line, while the losers generally had a growth strategy, which they were unable to reverse when the market went against growth stocks. The Pictet Small Cap Europe fund has performed very well over a five-year period, having been ranked third overall. Nils Francke, fund manager of the portfolio, says: 'Performance is based on stock selection into a hig...