Hermes Investment Management case study

The waiting game - four turnaround stocks in Europe

Published by : Hermes Investment Management

Stock markets are capricious in the short-term. Unexpected news flow and temporary factors can trigger bursts of share-price volatility, but leave the long-term fundamentals of companies intact. This is illustrated well by the performance of Pandora, ConvaTec, Nokia and Siemens Gamesa in the last year. While European equities rebounded strongly in the past 12 months as the region's economic recovery deepened, these four stocks faltered. James Rutherford, Portfolio Manager and Martin Todd, Co-Manager, Hermes European Alpha, at Hermes Investment Management explain why they decided to retain - or add to - these positions and maintain focus on the companies' prospects for long-term growth.

Published:13 March 2018

Business Area: Equities

Type: Portable Document Format (.pdf)

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