Daniel Avigad, who runs Lansdowne’s $2.7 billion European long only strategy, shares his insights on investment opportunities in Europe, the success behind his fund and top stock picks.

UK investment firm Lansdowne Partners has recently launched a series of UCITS funds, including TM Lansdowne European Special Situations Fund run by Daniel Avigad. The funds are opening up access to a wider pool of investors, including wealth managers.

Last year, the firm acquired UK-based equity boutique CRUX Asset Management, and changed the name of TMCRUX European Special Situations Fund to TM Lansdowne European Special Situations Fund. Avigad, who has a master’s degree in IT and a bachelor's degree in mechanical engineering, has run it since September 2023. The fund has been outperforming the index since the CRUX acquisition.

The fund aims to achieve capital growth, net of fees, over five-year rolling periods by investing in equities of European companies (excluding the UK) and European firms (including the UK). It holds 20 to 40 positions in well-run mid to large cap companies.

Avigad told this news service in an interview that the fund has good exposure to Scandinavia, with top 10 countries including Sweden, Finland, Switzerland, the Netherlands, Italy, Belgium, Spain, and the UK, as well as French companies which have an international not domestic exposure. Top sectors include industrials, financials, healthcare, materials, tech, consumer discretionary, communications, energy, utilities and consumer staples.

Avigad highlighted how Europe lacks natural resources, and the fund aims to find solutions to those problems. Electrical and mechanical engineering are becoming more important, he said, with the production of hydro from electricity a good starting point. “Electrical engineering is particularly important in France, with early funding of the nuclear strategy...It pays to be self-sufficient in energy,” he added. “Firms focused on low voltage equipment critical to electrification are also interesting and there are opportunities in Europe for sectors that aren’t necessarily new but are becoming more dynamic.” 

Avigad also emphasised Europe's structural challenges such as an ageing population and slowing productivity growth, which is where artificial intelligence and robotics could play a key role.

Meanwhile, the UK equity market is well positioned, he said, with investment opportunities in sectors such as contract catering and pest control. “The UK is also interested in house building which is a potential sweet spot,” he added.

Top stock picks
Top 10 holdings include Linde, a multinational chemical firm founded in Germany, domiciled in Ireland and headquartered in the UK. It is the world’s largest industrial gas company, serving customers in the healthcare, petroleum refining, manufacturing, food and aerospace industries. 

Other top holdings include: Dutch information services firm Wolters Kluwer; Italian banking group Intesa Sanpaolo; Belgian banking group KBC; French multinational Essilor International, which specialises in ophthalmic lenses; French multinational Schneider Electric which specialises in digital automation and energy management; France’s Capgemini, a multinational IT services and consulting firm; French tyre manufacturing giant Michelin; and Swiss-American pharmaceutical and medical products' firm Alcon.