SAM participates in MedCap Forum
Santander Small Caps Spain and Santander Small Caps Europe Fund Manager, Lola Solana, attended the 11th MedCap Forum, organized by Bolsas y Mercados Españoles (BME) in the Spanish Stock Exchange in Madrid.
The meeting, which was opened by BME’s president Antonio Zoido and the Economic Secretary, Iñigo Fernández de Mesa, brought together more than 200 representatives of the most important small and mid-cap Spanish companies. Lola Solana highlighted that the Funds’ investment philosophy under her management aim to “maximize risk/return. We believe that investing is about looking for 'value'; from this point, we seek cash generation, operational improvement and low debt. It is important to demonstrate our expertise. Capital perseveration is also key and the way we limit specific risk is by diversifying. This is why we don’t invest more than 5% in any one value” she explained.
She recalled that the financial crisis has taught us some lessons. “Now I am much more demanding with companies’ accounts. I take into account the cash and relative issues, not the absolute values, as I did in the past. I no longer worry because I realized that it is possible to come through every economic crisis. They are opportunities that, in the end, create alpha, profitability and wealth” she commented in her speech in one of the round table discussions.
In her view, the Spanish elections held earlier this month do not necessarily need to affect markets negatively, at least over the medium term. “The economy and politics are moving further and further apart. She also stressed that Spain emerged from the economic recession thanks to “the efforts of both individuals and small cap companies who have seen improvements in their competitiveness.”