Many investors are currently experiencing a lagging return. The cause? A (still) too large exposure to American Big Tech and a weak dollar. At Mpartners, we consciously choose a different path: Europe & Value.
The year of 2025 was excellent for Value and our portfolios. The start of 2026 clearly continues this trend. While many investors are currently missing out on returns, we benefit from European quality. Receive our current returns here
Our approach is not based on the whims of the day, but on a methodology we have employed for more than 15 years. We look for companies that can not only withstand a storm but come out stronger. While many investors miss out on returns by holding on to overvalued sectors, our strategy benefits from the underappreciated quality in European markets.
What does this exactly mean?
We base our choices not on sentiment but on fundamentally sound companies with figures that speak for themselves:
Healthy balance (Net Debt / EBITDA of 1x): In a world where debt burdens can weigh heavily, we select companies with a very low level of debt. A ratio of 1x means that a company can theoretically pay off its net debt within one year with its operating profit. This provides a large margin of safety.
Attractive valuation (P/E of ~12x): While the American market often sees multiples of 25 or 30, we find quality companies in Europe for less than half. This limits the downside risk and increases the potential for price recovery.
Solid income (4% dividend yield): An average dividend of 4% is not only a reward for the shareholder but also a sign of financial discipline and predictable cash flow.
Outlook for the rest of 2026
The momentum from January and February gives us a lot of confidence. The combination of European undervaluation and the strength of value stocks creates a unique entry point for investors who want to combine stability with return.
In our view, investing is not about following the crowd, but about recognizing value that others overlook. In 2026, we will continue to do what we are good at: keeping both feet on the ground and choosing European quality.
