Quoniam launches systematically managed mutual fund for European small cap equities
Quoniam Asset Management, a German pioneer in systematic investment strategies, is managing a new mutual fund that invests in European small cap stocks.
- In view of attractive valuations, Quoniam currently sees outperformance potential in the small-cap segment.
- The fund is based on Quoniam’s successful small cap strategy, which has been in place since 2010.
- A data-driven, scientifically sound approach identifies hidden champions across the whole small-cap segment.
- The use of innovative factors, supplemented by machine learning techniques, ensures diversified portfolios and an attractive risk/return profile.
Frankfurt am Main, 10 June 2025 – Quoniam Asset Management, a German pioneer in systematic investment strategies, is managing a new mutual fund that invests in European small cap stocks.
“We see outperformance potential in European small caps, as these companies typically have low coverage by fundamental analysts. Thanks to the changing economic environment and more attractive valuations, small caps have the opportunity to beat their larger counterparts,” explains Dr Lisa Herr, Portfolio Manager at Quoniam.
The fund is based on Quoniam’s small-cap strategy, which has been successfully implemented for institutional clients since 2010. The strategy has outperformed over the 3-year and 5-year periods and since inception (source: eVestment database, as of March 2025; benchmark: MSCI Europe Small Cap).
A data-driven, scientifically sound investment strategy can better identify and utilise market opportunities in the small cap segment. “We believe that now is the right time to strategically invest in this segment and see a growing interest from investors. Our systematic approach to small cap investing allows us to capitalise on inefficiencies and identify hidden champions. Our historical performance in institutional mandates is proof of this,” adds Dr Volker Flögel, Chief Investment Officer of Quoniam.
Active diversification is a key success factor for small cap investments. Small caps harbour specific risks, including dependencies on supply chains, a higher susceptibility to economic fluctuations and lower liquidity. To mitigate these risks, the new fund is broadly diversified and benefits from Quoniam’s established systematic investment process. This process analyses around 3,000 European companies on a daily basis. More than 200 individual securities from the entire investment universe are included in the portfolio, which has an active share of over 75% despite its breadth.
In the daily analysis of the broad small cap market, the attractiveness of each stock is determined on the basis of more than 60 key figures that have a demonstrable impact on alpha. The strategy is based on an objective assessment of risk and return potential without the inherent risks of subjective decisions based on, for example, management relationships, company history or biases.
With the newly launched mutual fund, investors can easily benefit from a strategy that specifically selects promising small caps, utilises machine learning insights and implements the portfolio in a cost-efficient manner. The strategy is being launched by Union Investment as a sub-fund of Quoniam Funds Selection SICAV.
Contact
Katja HögerDirector Corporate Communications