The European Small Cap Space

The European Small Cap space is very large. The area has historically outperformed the broader European index, making it an attractive asset class. From 1st of January 2019 to December 31st 2021, the MSCI EUROPE SMALL CAP index outperformed the broader MSCI EUROPE index 17%.

St. Petri Capital identifies our investable space as companies with a market capitalization of EUR 50 million to EUR 5 billion, resulting in more than 2000 possible investment opportunities. Our main focus is on companies with a market capitalization between EUR 100 million to EUR 1 billion. Our Angel Fund’s focus is lower.

The small cap segment is under-researched and under-invested, which often leads to mispricing of equities. This opportunity is exploited through our concentrated investment strategy.

We strongly believe the European small-cap segment is an attractive investment universe and, in this segment, you will find winners of the future.

Our investment philosophy

We are stock pickers. Based on a disciplined investment approach, developed over many years, we aim to construct a high-conviction portfolio of companies with sustainable competitive advantages, visible growth potential and attractive valuations.

Our portfolio managers and analysts meet with hundreds of small and micro-cap companies yearly which allows for unique insight into the segment.

Through a bottom-up driven and research-heavy investment approach our professionals leverage long-term experience, investing in great quality companies with an edge – companies with unique business models creating long-term value for investors.

Our focus

  • Market leaders
    We like companies with strong market positions and proven business models – we invest in companies where we are convinced that the market is here for longer. We do not invest in start-up companies.
  • Pricing power
    We like companies who have pricing power or is at least facing stable prices on its market.
  • Close access to management
    It is important for us to meet management before making an investment decision.
  • Strong cash flow generation
    We like companies with a strong cash flow generation and strong balance sheets. We do not invest in companies with a large net debt.
  • Attractive valuations
    We like to buy stocks with low valuations, but we also know that you have to pay for quality. For us the most important thing is to find great quality companies with an edge and the potential to provide nice excess returns to our investors.
  • Liquidity
    An integrated part of our investment process is to look at a company’s liquidity. Our focus is to always maintain a liquid portfolio and to be able to trade a stock within reasonable time. Too low liquidity can result in us not buying the stock. This is evaluated on a case-by-case basis.

Active long-term perspective

Our investment philosophy is based on active stock selection with a long-term perspective typically defined as at least one year. An integrated part of the investment process is a thorough judgment of liquidity before initiating a position.

Alpha seeking

We are bottom-up driven, fundamental investors aiming to identify companies benefiting from structural changes with functional business models, strong fundamentals, a large total addressable market, and a strong market positions which provides the potential for strong strategic growth. We believe small companies provide room to grow and add value operationally.
From our investment approach we construct a focused portfolio typically consisting of 30-50 carefully collected companies.

Legal Disclaimer

Welcome to St. Petri Capital A/S’ (hereinafter referred to as the “Company”) website. The aim of the website is to provide you with information on the Company and our work with providing investment advice in relation to the hedge fund, Kapitalforeningen Wealth Invest (compartment: St. Petri L / S AKL). As such the website and its content is available solely for your information and interest and should not in any way be considered sales promotion material.

The website does not provide you with advice or recommendation of any kind and you should not rely upon this site as the basis for any decision or action. Nothing on this website constitutes investment advice or legal, tax or other advice, and any recommendations that may appear on this website does not reflect and has not been based on the investment objectives, financial situation, experience or particular needs of any specific recipient. The website and its content is as up to date as is reasonably possible and may be subject to revision in the future. You are advised to consult professional advisors in the appropriate field with respect to the applicability of any particular aspect of the contents.

The Company makes no representation or warranty, express or implied, as to the website’s and its content’s completeness, accuracy, reliability, timeliness, availability, uninterrupted or error free functionality and compliance with applicable laws or that this site or the server that makes it available are free of viruses or other harmful components.

The Company shall not have any liability whatsoever for losses howsoever arising, directly or indirectly, from any use of this website or its contents or otherwise arising in connection therewith. This website may contain links to websites operated by other parties. The Company has no responsibility or control over the content or operation of such sites and shall not be liable for any damages or injuries arising from that content or its operation. Such links do not imply the Company’s endorsement of material on any other site. The Company provides links to other websites as a convenience to users, and access to any other websites linked to this website is at your own risk.

The content of this website is only addressed to and directed at persons in Denmark who are “professional clients” or “eligible counter-parties” within the meaning of Article 4(1)(10) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II) (“Professional Clients”). By entering this site, you represent and warrant to the Company that (i) you are a Professional Client; and (ii) you have read and agree to comply with the contents of this legal disclaimer.

By entering this site, you acknowledge and agree to this legal disclaimer and will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this. If you do not agree to this, do not use the site.