Dividing Europe for added value

Mark Pignatelli is a fund manager whose approach to managing money stems from his academic background. He recalls: "I went to the London School of Economics, where I studied economics and economic history. I like numbers and was keen to do something where this could be put to practical use. What attracted me to fund management is that I quite like the idea that money can be 'put to work'. It doesn't actually do anything but you can still make sizeable profits from it".

Mark Pignatelli is a fund manager whose approach to managing money stems from his academic background. He recalls: "I went to the London School of Economics, where I studied economics and economic history. I like numbers and was keen to do something where this could be put to practical use. What attracted me to fund management is that I quite like the idea that money can be 'put to work'. It doesn't actually do anything but you can still make sizeable profits from it".

After graduating in 1986, Mr Pignatelli's first port of call was Baring Asset Management, where he stayed for 13 years, becoming head of the group's European equities team. He joined Schroders in February of this year, again as head of European equities and a director of Schroder Investment Management, at which point he took over responsibility for the Schroder European Growth Fund. Mr Pignatelli's career has not solely focused on Europe. He explains: "At Barings, I started on the US desk and transferred to the European desk in 1989 as it gave me the opportunity to work with Crispin Odey who is a fascinating guy and one of the best managers in the sector." (Mr Odey has since left Barings and set up his own specialist management house).

Mr Pignatelli says: "The European markets were very inefficient in those days. If you knew a bit about macroeconomics and how to read a balance sheet you would make money. Today it is a much more difficult job as the markets have become considerably more efficient."

He explains: "The central objective of the fund is to add value to the returns from the index, and we try to do this through a very disciplined approach. This is not a 'good luck' fund: We have got to try to find stocks that will outperform the universe."

Mr Pignatelli's method for identifying these gems is based on three major themes. He says: "There are three things we look for. The first is to evaluate the quality of a company's business franchise and whether the market fully understands that value on, say, an 18 month or two-year view. Secondly, we work out the earnings momentum of a stock and whether it is liking to surprise positively or negatively, and seek to only invest in those companies which are likely to surprise positively. Thirdly, we do a lot of technical analysis to work out what the market as a whole thinks about stocks. This is extremely important, since it is the market that will decide whether a stock goes up or down."

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Arts and Entertainment
Chris Martin of Coldplay performs live for fans at Enmore Theatre on June 19, 2014 in Sydney, Australia. (Photo by Mark Metcalfe/Getty Images)
music
Sport
Dave Mackay lifts the FA Cup in 1967 having skippered Spurs to victory
football
Life and Style
Marie had fake ID, in the name of Johanna Koch, after she evaded capture by the Nazis in wartime Berlin
historyOne woman's secret life as a Jew in wartime Berlin
News
Jihadi John
newsMonikers like 'Jihadi John' make the grim sound glamorous
Arts and Entertainment
As depicted in Disney's Robin Hood, King John was cowardly, cruel, avaricious and incompetent
film
Life and Style
Travis Kalanick, the co-founder of Uber, is now worth $5.3bn
tech
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

    £25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

    Recruitment Genius: Customer Service Advisor

    £15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...

    Ashdown Group: Trainee Consultant - Surrey / South West London

    £22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

    SThree: HR Benefits Manager

    £40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

    Day In a Page

    Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

    Climate change key in Syrian conflict

    And it will trigger more war in future
    How I outwitted the Gestapo

    How I outwitted the Gestapo

    My life as a Jew in wartime Berlin
    The nation's favourite animal revealed

    The nation's favourite animal revealed

    Women like cuddly creatures whilst men like creepy-crawlies
    Is this the way to get young people to vote?

    Getting young people to vote

    From #VOTESELFISH to Bite the Ballot
    Poldark star Heida Reed: 'I don't think a single bodice gets ripped'

    Poldark star Heida Reed

    'I don't think a single bodice gets ripped'
    The difference between America and Israel? There isn’t one

    The difference between America and Israel? There isn’t one

    Netanyahu knows he can get away with anything in America, says Robert Fisk
    Families clubbing together to build their own affordable accommodation

    Do It Yourself approach to securing a new house

    Community land trusts marking a new trend for taking the initiative away from developers
    Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

    David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

    The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
    Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

    Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

    Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
    With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

    Money, corruption and drugs

    The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
    America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

    150 years after it was outlawed...

    ... America's first slavery museum is established in Louisiana
    Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

    Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

    The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
    Tony Oursler on exploring our uneasy relationship with technology with his new show

    You won't believe your eyes

    Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
    Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

    Moores must go. He should never have been brought back to fail again

    The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
    War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

    The battle for Mosul will unleash 'a million refugees'

    Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn