Stock in Focus: Dassault Aviation

Stuart Mitchell, manager of the SWMC European Fund shares the unusual stock pick he believes will deliver growth for investors

S.W. Mitchell Capital 21 June, 2016 | 10:00AM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. We hear from Stuart Mitchell, manager of the SWMC European Fund.

We have sourced many of our most profitable investment ideas over the years from esoteric areas of the market. Often these opportunities are poorly researched by the investment community. We are witnessing one such opportunity currently in Dassault Aviation, the manufacturer of the Rafale fighter aircraft and private jets.

These are not usually mainstream investment industries and the company is barely known. While Dassault Aviation has been publicly quoted for 27 years, the free float remains small; rising from 2% to 14% when in 2015 Airbus began to dispose of its investment as part of its wider refocusing. The free float should rise to 38% by the end of 2017, as Airbus fully disposes of its holding. This might encourage the fund management industry to begin paying closer attention.

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About Author

S.W. Mitchell Capital  is an investment boutique focusing on UK, European and Global equities.