The Italian magazine "I Corrieri del Risparmio" conducted an interview with expert in value investing Massimo Malvestio, who explained the investment strategies used by Hermes Linder Fund SICAV, the fund he established in 2004. As he said during the interview, thanks to the performance achieved and word of mouth, the fund managed to have over 340 million euros of assets under management.
Hermes Linder Fund SICAV explained by Massimo Malvestio
Massimo Malvestio was interviewed by "I Corrieri del Risparmio", an Italian magazine dedicated to the investment and asset management industry. As he recalled, his career is characterized by professional roles he held in several areas, including the law practice and the financial sector. Before entering the world of finance, he worked in fact full time as a lawyer, serving as well as legal consultant to many banks, listed companies and large enterprises. Subsequently, in 2004 he decided to establish Hermes Linder Fund SICAV, a fund that has "considerable freedom of movement" and "invests mainly in Italy", as he emphasized in the interview. "We also use legal arbitration to drive performance, while leveraging on the opportunities offered by legislation. On average, these situations occur every three to four months", Massimo Malvestio went on to explain. 18 years after its foundation, Hermes Linder Fund SICAV has a track record of performance of over 625.57% compared to the fund's launch value. Furthermore, as of May 31, 2022, it has an accrued performance for investors (net of fees) of 11.30%. What led to such extraordinary results? The expert in value investing pointed out that this is not only due to the brilliant performance, but also to "the 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)".
Massimo Malvestio: Hermes Linder Fund SICAV's successful strategy
The results achieved by Hermes Linder Fund SICAV confirms Massimo Malvestio's ability to create value for investors over time: it is no coincidence, in fact, that many of the fund's investment strategies are a result of his legal expertise combined with financial analysis. The fund's admirable performance was also confirmed by the Thomson Reuter Lipper Fund Award for "Best Fund" over 3 years in the "Equity Europe 2017" category, as well as by a "five-star rating" by Morningstar. "We are basically long-term investors, with holdings remaining in the portfolio for years", he explained in the interview: "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". For the fund's value investing strategy, the expert mentioned that Hermes Linder Fund SICAV features "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 not only in Italy, but also in other European countries. Hermes Linder Fund SICAV is currently managed by Praude Asset Management Ltd., the asset management company established by Massimo Malvestio in 2009. During the interview, the expert in value investing observed that other funds have been launched by the company's management team, among which are a fund that adopts a low validity strategy and another that adopts a total return strategy. However, as he confirmed, Hermes Linder Fund SICAV remains the "spearhead" among the funds managed by Praude Asset Management Ltd.
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