Each month, we review the monthly activity reports of small European value funds (OPCs) and summarize the latest choices of the best managers in a concise table. The goal is to help you better select them, understand their performances, and easily follow the latest decisions of the best French “stock-pickers,” and why not get inspired in your own value choices.
The January effect is long gone and the year 2026 has been challenging for investors. After doubts related to the effects of the widespread use of AI throughout the economy in late February, the war in Iran turned the small and mid-cap indices into the red in early March. This led to a spike in volatility, to their detriment, as a result of the risk-off environment.
In February, European Small & Mid Cap indices evolved in a mixed way: +3% for the MSCI Emu Small NR, and -1.3% for the MSCI Emu Micro NR. This was mainly due to differences in sector exposures. Traditional sectors such as utilities, food, materials, real estate, and energy benefited from their immunity to the threat of AI disruption and geopolitical tensions surrounding Iran, even though the war only broke out in early March. On the contrary, media, financial services, and technology lagged behind. In France, the CAC Small index was stable, masking significant sectoral disparities regardless of the quality of the publications of each of its components.
The current concern for small values revolves around the duration of the war in Iran and its impact on energy costs. So far, economic statistics, company publications, and liquidity flows entering the markets, particularly in French small values, have been encouraging. Collection has significantly picked up in the asset class funds according to data compiled by Portzamparc.
In terms of stock market movement, IPO activity seems to be on the rise following the success of Rising Stone IPO, which was subscribed to by many funds in the selection. Two Beauty Tech players, including Ieva Group, have also joined Euronext Growth with the support of BPI for the launch of their new direct investment fund. The group focuses on a dozen French small capitalizations (<500M€) and is led by Jean-Michel Karam, who is also the head of electronic company Memscap.
The French micro-capitalization scene has seen an increase in capital increases for some companies, while others are facing significant challenges. A reshuffle of the CAC Mid 60 and CAC Small indices is set for March 20.
In general, notes include funds in the selection starting the year positively with an average 3.9% gain by late February. Notable investment movements include acquisitions of Rising Stone, Altaréa, and Sidetrade, with some reductions in Exail. New entries like Claresco PME P are also noted for returning to the group by focusing on biotech values that have performed well.
Further insights from professional arbitrators highlight their strategic moves in the market. Notable adjustments include Independence Europe Small increasing stakes in certain companies while reducing positions in others. Across different funds, specific trade-offs and reallocations have been made to adapt to market conditions and take advantage of opportunities.
The analysis ends with a selection of top-performing small caps by the Stock Screener tool, focusing on French companies with market capitalizations under 5 billion dollars.
(Source: Quantalys, monthly report from asset management companies)
In summary, the professional management of these funds involves a blend of strategic investments, reallocations, and profit-taking to navigate the market’s challenges and capitalize on emerging opportunities.
