Pitching & Buying Into This Tiny Serial Acquirer
25% CAGR in EBITA, <250 million EUR market cap, and held firmly by long-term investors
Within our portfolio, we hold several high-quality growth companies - some of which are quite well-known, while others are still flying under the radar and do not meet many investors’ criterium on trading liquidity.
Being long-term investors with a business owner’s mind, we’re not worried about less share price activity or increased volatility due to technical factors such as quarter-end rebalancing, forced fund redemptions, et cetera.
Still, whenever we find a compelling opportunity, irrespective of the market cap and trading activity, we should be sharing it with you - whether it translates into an actionable idea or case study. Last January, we chatted with one of our very first premium members, and put up an Italian small cap named Fope.
Clear quality metrics with a proven track record of delivering solid earnings growth but trading at a relatively low multiple due a low free float. And now it’s up 55% in less than two months. Obviously, not every small cap we’ve stumbled on has seen such rerating but it’s worth pitching potential opportunities.
That’s why we’re introducing and also buying into the new name presented below.
It’s got a market cap of c. 200 million EUR, is being held firmly by long-term investors including management team (22%), grew its EBITA by over 25% per annum by generating high-teens percent incremental returns on capital, and has a long reinvestment runway. This is going to be an introductory pitch, not a complete write-up.
- always use strict limit orders -