Leading French boutique takes first step into large cap space

The Amiral Gestion firm founded by European equity veteran François Badelon has launched a new fund which will focus on Europe’s mid to large cap equity sector.

The Sextant Europe fund is a concentrated product of around 30 stocks which will focus on key themes affecting Europe, such as ageing population and declining natural ressources.

It will be run be managers Eric Tibi and Julien Lepage and currently holds stocks like UK clothes retailer Next and Europe’s leading car windshield replacement company Carglass.

A self-professed small cap specialist, Badelon (pictured) said he decided to venture into this new sector as Tibi, a former head of UBS’ French office who joined Amiral Gestion 18 months ago, is an expert in the European mid to large equity sector.

‘A few years ago we would have never launched a fund like this as we didn’t have the expertise,' said Badelon. 'Over the past 10 years we have made more and more investments in the mid cap area but we have now acquired the knowledge necessary to run this type of fund since Eric joined us.’

The fund will, however, avoid exposure to certain themes such as raw materials. Badelon had a bad experience with this sector after a big bet on oil went sour in 2007-2008.

‘While this may appear contrary to the funds we have in our current range, such as Sextant Peak Oil, the European companies in this sector are often exposed to countries with high political risks,’ said Badelon.