PZU Asset Management is actively building positions on NewConnect, the Warsaw Stock Exchange's alternative market for smaller companies, at a time when most institutional investors are steering clear.
Tomasz Matras, head of the equity market office at PZU, outlined the fund's strategy to identify future growth stocks among the exchange's less liquid listings, defying the broader trend of institutional avoidance.
Matras emphasized the importance of rigorous screening to find companies with strong fundamentals that are currently undervalued by the wider market.
The move highlights a divergence in sentiment within the Polish equity market.
While liquidity concerns and higher volatility typically deter large funds from NewConnect, PZU's approach suggests that selective opportunities exist for investors willing to look beyond the main board.
Matras emphasized the importance of rigorous screening to find companies with strong fundamentals that are currently undervalued by the wider market.
This strategy comes as global markets continue to grapple with concentration risks in large-cap technology stocks, with the top holdings of major indices like the MSCI World and S&P 500 dominated by a handful of giants.