Fidelity's Karoline Rosenberg shares the strategy behind her $6.5 billion European Dynamic Growth Fund - which is beating 94% of its peers.Here are her five stock picks in Europe which will be winners in the coming years, including two that she believes are are currently too harshly discounted by the market.For Karoline Rosenberg, co-fund portfolio manager of Fidelity's $6.5 bln European Dynamic Growth Fund, the key to success is to.
"We're very valuation focused," she explained, "we operate with a margin of safety, meaning we are big believers in thinking 'what is the intrinsic value of this business' and making sure you buy below that." "We feel valuation is really a source of risk ultimately, and the higher the valuation, the more sure you need to be that you're right with your assumptions," she said.One example of the fund's success with this approach was with its stake in French online payments company Ingenico, Rosenberg said.
"Everybody hated it because of the payments terminal business... but in the background they had acquired some really interesting digital assets and built a very interesting payment platform on the back of these acquisitions." Additionally, the company had experience a couple of execution glitches, which led to profit warnings, "so the market was really fed up with the name," Rosenberg said.