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This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

    • Jun 23, 2020

European Mid-Cap Equities: Portfolio Optimizer to Achieve a Balanced Risk-Return Profile

European Mid-Cap Equities: Portfolio Optimizer to Achieve a Balanced European Mid-Cap Equities: Portfolio Optimizer to Achieve a Balanced RiEuropean Mid-Cap Equities: Portfolio Optimizer to Achieve a Balanced Risk-Return Profilesk-Return ProfileRisk-Return Profile


Europe represents nearly one-third of the world economy, however, European equities as an asset class are largely ignored.


European equities, particularly mid-caps, represent a largely untapped opportunity for investors. Given that they comprise nearly one-third of the global economy yet are often overlooked, these equities provide an appealing environment for stock-picking, with significant market inefficiencies and pricing anomalies compared to their U.S. counterparts. European mid-caps often deliver similar growth and returns but at substantial discounts, offering attractive long-term investment prospects and a viable tool for portfolio diversification.


Investing in European mid-caps requires an active management approach due to the region's complex and varied business landscape, which includes multiple languages and differing business practices across countries. This complexity often leads to mispricing, which can be exploited by savvy investors through deep, fundamental analysis. Active stock-picking in this diverse market can achieve higher returns than passive strategies that target broader European indices, which often include sectors with lower growth potential.


Access the entire article to delve deeper into the investment opportunities and strategies in European mid-cap equities.



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Table of Contents

  • European Equity as an Ideal Stock-Picking Environment

  • Key Takeaways: Portfolio Diversification & Increasing Returns

  • What is Mid-Cap European Equity

  • What Sort of Companies Can One Find?

    • Illustration of European Global Leaders in their Respective Fields

  • Why Should Investors Invest In Europe?

  • The General European Indices Mispresent Underlying Performance

  • The Ways to Invest In Europe




Thanks to our Contributor


Lucerne Capital Management Logo


Founded in 2000, Lucerne Capital Management is an SEC-registered alternative investment firm specializing in fundamental, bottom-up stock selection with a focus on mid-cap European markets. The investment philosophy reflects a private buyer’s perspective of owning high-quality assets at attractive prices for the long-run.

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