An Italian magazine dedicated to investment and asset management called I Corrieri del Risparmio conducted an interview with the founder of Praude Asset Management, Massimo Malvestio.
Massimo Malvestio's pride and joy: Praude Asset Management
Besides being an experienced lawyer and an expert in value investing, Massimo Malvestio is the founder of Praude Asset Management, which he established in 2009. Before entering the world of finance, he worked full time as a lawyer. He also founded a law firm with three other partners called "Studio Legale Barel Malvestio & Ass.", in which he focused on banking law, financial market law, governmental enterprises and financial crime law, and a bank in Switzerland. Praude Asset Management is an asset management company providing investment services and operating under a license from Malta Financial Services Authority (often abbreviated to MFSA). The company manages a considerable amount of successful funds, including Hermes Linder Fund SICAV, launched by the lawyer in 2004. Since that year, the fund achieved amazing results, getting to a track record of performance of over 600% compared to the fund's launch value and an accrued performance for investors of 11.7% (net of fees). During the interview conducted by I Corrieri del Risparmio, Massimo Malvestio confirmed that, although having launched over the years other funds such as Total Return and Low Volatility, he still considers Hermes Linder Fund the "spearhead" of the funds managed by Praude Asset Management. And he is not the only one who thinks so. Hermes Linder Fund's admirable performance was even confirmed by the Thomson Reuter Lipper Fund Award for "Best Fund" over 3 years in the "Equity Europe 2017" category.
Massimo Malvestio's successful strategy
When the interviewers asked Massimo Malvestio about Hermes Linder Fund's strong growth, he said that it is mainly due to the performance achieved and word of mouth. "This is how we managed to have over 340 million euros of assets under management, with our fund among the best 1% of Small Cap funds by return in three of the last six years (Bloomberg)", he explained. Then he added: "The fund has considerable freedom of movement and today invests mainly in Italy. We also use legal arbitrage to drive performance, while leveraging on the opportunities offered by legislation. On average, these situations occur every three to four months". As regards investment areas, he claimed that "in general, we really like the Star segment (now Euronext Star Milan - ed) and industrial companies. It is possible to find well-known companies of extraordinary quality. The only downside is that some of them are not very internationalized". "We are basically long-term investors, with holdings remaining in the portfolio for years", he pointed out. For the fund's value investing strategy, he mentioned that they use "a bottom-up approach by selecting stocks of companies that have stable earnings growth, credible business, capable management, low leverage, reasonable multiples and good dividend yields", which are elements that can be found in Italy as well as in Germany Switzerland, Austria, Spain, the Netherlands and other European markets. After admitting that investments in the banking sector have been few so far, Massimo Malvestio stressed that the fund is open to "solid and cash-generating realities".
User :- Luca Serri