MOI Global instructor Sebastien Lemonnier, a featured speaker at the upcoming European Investing Summit 2018, serves as European equity portfolio manager at INOCAP Gestion, managing Quadrige Europe, the recently awarded top-performing UCITS fund by Agefi-Europerformance.
Sebastien’s investment strategy follows a pragmatic approach, implementing a rigorous stock-picking process based on five fundamental criteria:
1) Leading position in growing niche market,
2) International exposure,
3) Operating excellence,
4) Family owned,
5) Disciplined capital allocation.
Sebastien favors companies that provide differentiated, value-added solutions in existing but evolving industries. His investment conviction is built from an intense on-the-ground approach, with more than five hundred company meetings and site visits annually.
Last year, Sebastien presented his investment case on Barco, based in Belgium, which is up ~40% over the past year and remains among the fund’s top investment holdings.
At European Investing Summit 2018, coming up live online on October 11-12, Sebastien will discuss his latest top holding — Dermapharm, a family-owned leading manufacturer of patent-free branded pharmaceuticals, listed in Germany, with a market capitalization of €1.5+ billion.
Founded in 1991, Dermapharm focuses on specialist niche markets, such as vitamin D (originator of Dekristol) and dermatological products where R&D costs and the barriers to entry are relatively high. Implementing a “buy and build” approach, along with international expansion and operational excellence, the company generates strong free cash flow (with EBIT margin in excess of 20%). Profits are estimated to grow 20+% annually, while the valuation multiple recently stood at only 12x EBIT 2019.
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