Investors haven't loved Europe for many years. First there were concerns about the euro and Greece's debt problems, and these persist. More recently investors have shunned the eurozone following the UK's vote to leave the European Union (EU), the political tensions inflamed by the migrant crisis and rising populism. Last year, open-ended European equity funds saw the worst annual outflows since 2008, which amounted to €76bn (£64.84bn).
"But companies are not the economy or politics of any nation," says Martin Todd, co-manager of Hermes European Alpha Equity Fund (IE00B3RFR850). "Although European businesses may operate within these overarching forces, many have the talent, resources and opportunities to adapt, restructure and innovate in order to thrive."
European companies that are performing strongly have proved their resilience, having endured eight years of economic and political turbulence. Even without an economic tailwind companies such as Madrid-based IT solutions provider Amadeus (AMS:MCE) have been growing by improving efficiency and reducing costs through new technology, says Mr Todd.