Ferrari's strong run has helped the CF Miton European Opportunities Fund to return 55.7 per cent since its launch in 2015.
Data from the Alternative Investment Market-listed asset manager has revealed its holdings in the European high-end automobile producer has helped power the fund to more than £100m in assets under management in less than two years.
According to Carlos Moreno and Thomas Brown, co-managers of the fund, luxury brands and manufacturing have been good sectors to park some assets into.
They said: "We like companies that are expanding globally from a European base. In mid-caps, this potential is not always recognised by the market, with many good stocks trading at a substantial discount to their intrinsic value.
It’s not easy for investors to be positive on the European economy, but with the right investment approach to the region, that becomes irrelevant. Carlos Moreno"Our top holding Ferrari is a good example. A unique brand beginning to realise fully its pricing power and volume potential following a spin off from Fiat. Carl Zeiss and Ion Beam Applications have also been top contributors to performance since launch."
The £104m fund has 50 holdings, the largest of which is Ferrari, at 3.7 per cent of the portfolio. Other top holdings include Interroll at 3.2 per cent and Ion Beam Applications, at 2.8 per cent.
The managers have also invested in Christian Hansen, and increased their allocation to Grandvision and Xing.
According to data from FE Analytics (mid-mid, net income reinvested and net of fees), the Miton European Opportunities fund has delivered a return of 55.7 per cent since launch in December 2015.
This compares to the comparable index, the FTSE World Europe ex UK index, which steered its way to a 47 per cent return, while the Investment Association Europe ex UK sector has returned an average of 40.8 per cent over the same period.
The managers added: "It’s not easy for investors to be positive on the European economy, but with the right investment approach to the region, that becomes irrelevant.
"We have a strong overweight position in healthcare, where a globally ageing population is driving demand.
"Fundamentals-driven stock picking is more important than ever, and our stock selection has been the dominant factor driving outperformance, especially in industrials and IT."
This comes as research from legal firm Motoring Offence Laywers revealed that 38 per cent of first-time drivers in the UK are opting for brand new cars with the latest technology, rather than buying a second-hand one.
simoney.kyriakou@ft.com
