Europe Long Term Alpha

We analyze the STOXX Europe 600 Index using a fundamental screening model. Our goal is to find up to 30 stocks that are likely to outperform the market on a long-term horizon. The STOXX Europe 600 Index represents large, mid and small capitalization companies across 18 countries of the European region In order to diversify cluster risks in our portfolio, we chose to select a maximum of six stocks per country as well as five stocks per GICS Industry Sector. As we are aware that small capitalized stocks tend to outperform companies with a larger market capitalization, we however chose to only account for companies with a market capitalization of around or larger than USD 8bn. We further only selected investments that paid dividends over the last twelve months or are expected to pay a dividend in the next year.