Europe's Small & Mid Caps: Resilience Amidst Challenges

European small and mid caps have delivered an impressive 8% gain in 2026, aligning with broader European indexes despite geopolitical challenges. The rise in oil prices has led to a recent market correction, viewed as an opportunity due to favorable conditions.

Strong earnings growth, with a 14% forecast for 2026, is bolstered by resilient economic indicators such as improved manufacturing PMIs and raised GDP forecasts. European industrial companies are benefiting from structural trends like energy efficiency and reshoring production capacity.

Investment in AI, energy, and infrastructure signals a long-term opportunity. Specialists like Andritz in hydropower are poised to leverage growing market demands. Bellevue's Entrepreneur Europe Small Fund has a strong track record, with returns outperforming benchmarks thanks to a rigorous investment philosophy.