At the London Value Investor Conference 2025, Alex Roepers of Atlantic Investment Management spoke on the topic of "Concentrated Mid-cap Value Investing - Four Compelling Stocks", where he emphasized the advantages of capital concentration and presented four high-conviction mid-cap ideas in the U.S., highlighting disciplined valuation criteria and active engagement without board involvement.
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2025 London Value Investor Conference - Alex Roepers
Concentration of capital is key – stock picking is less relevant when concentration of indexes is high. We focus on liquid companies with PE of 10 and EV/EBITDA of 5.5. We avoid high-risk areas, we avoid tech.
We engage with management. No board seats. But active. We have a 15% limit on any stock. We start selling as the share price increases.
We have three funds. No leverage. Always 100% invested.
Our four companies represent 40% of our US fund.
The four stocks are:
Nexans
- Cable maker, French
- Play on power infrastructure development
- Solid balance sheet
- Our price target is USD 153 vs 97 USD currently
Specifically he notes that while Nexon has a:
"Checkered history, but now they have a very strong balance sheet with management, and they are participating in a whole bunch of very favorable end market environments, including electric power generation with infrastructure upgrades. It was mentioned earlier how much electric steam needs, data centers for airline, for charging electric cars. So they're very strong.
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