Equity 

RWC launches European equity funds for Clapp

RWC launches European equity funds for Clapp

Graham Clapp, the industry veteran who once ran the giant Fidelity European Growth fund, is to launch two new funds at his new employer, RWC Partners.

Mr Clapp will run the RWC European Growth fund and the RWC Continental Europe Growth fund.

The first of those will follow a similar strategy to that of the existing offshore fund run by Mr Clapp, while the Continental Europe Growth fund will have a limit on the level of exposure to the UK market.

 

Mr Clapp brought with him a team of seven analysts and portfolio managers to run the funds.

Dan Mannix, chief executive of RWC, said: “Graham was extremely keen to launch a long-only fund for European investors.

"During his time at Fidelity he had a huge following with the Fidelity European Growth fund producing significant outperformance under Graham’s management and being the largest European equity fund at the time.

“We are seeing increasing interest in the European equity space and believe the asset class currently offers long-term strategic investors a real opportunity. European equities have for many years been priced at a discount to other main stock markets.

"Many believe that this discount has been justified by greater political and economic uncertainty surrounding continental Europe.

“However, investors today increasingly believe that the risks priced into European assets are much better understood and therefore see the appeal of the high quality European corporate sector.”

Patrick Connolly, head of communications at Chase De Vere, said: ”European equities are in favour with many investors and so this could prove a good time for RWC to launch it from a commercial perspective.

"The fund manager is very experienced and respected and the fund could perform well, although we would want to see it in action before considering using the fund in our client portfolios.”

Darius McDermott, managing director at Chelsea Financial Services, said Mr Clapp has displayed strong outperformance throughout his career, but added that geo-political concerns weigh on the investment case for Eurozone equities.

david.thorpe@ft.com

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