Is Now the Right Time to Invest in Small and Mid-Cap Stocks?
Small- and mid-cap investments are increasingly recognized for their potential to diversify portfolios, drive growth, and generate alpha. A thorough analysis suggests these companies offer compelling opportunities, especially given their ancient undervaluation compared to their large-cap counterparts.this presents a chance to invest in businesses that, due to their size, can often adapt more swiftly to evolving market conditions and contribute significantly to sustainable transitions.
one example illustrating this potential is Qiagen, a German company specializing in biological sample technologies. Qiagen generates approximately 88% of it’s revenue from consumables and 12% from instruments used in human disease diagnostics, pharmaceutical research, and academic research. A considerable portion of its revenue directly supports positive impact through disease diagnosis, optimized treatment selection, and advancements in scientific finding. The company demonstrates a strong financial position, exhibiting high revenue growth and healthy margins. A significant portion of Qiagen’s revenue is recurring, bolstered by its established brand reputation. Furthermore, its robust balance sheet provides adaptability for potential dividends, share buybacks, and strategic acquisitions.
Funds like the Triodos Pioneer Impact Fund and the Triodos Future Generations Fund exemplify a focused approach to this investment space. Both funds achieve substantially higher impact scores than the broader market, employing high-conviction, concentrated portfolios with low turnover and minimal correlation to global equity indices. They operate with a long-term investment horizon, utilizing a bottom-up stock selection process driven by a dedicated team identifying under-researched growth opportunities with a solutions-oriented, pure-play focus.
Ultimately, a long-term perspective supports the view that listed small- and mid-cap investments can contribute to robust portfolio performance.
Disclaimer:
This is a marketing interaction. Please refer to the prospectus and the Key Investor Details Document (KID) of the Triodos Pioneer Impact Fund and Triodos Future Generations Fund before making any final investment decisions. An overview of the investor’s rights can be found in the prospectus. The value of yoru investment can fluctuate because of the investment policy. Both funds are managed by Triodos Investment management, which holds a license as an alternative investment fund manager and UCITS and is under the supervision of the Dutch Authority Financial Markets and the De Nederlandsche Bank.
