Italy is an attractive market. This is news in and of itself, but it is even more noteworthy considering that the country’s crisis is far from over, its political situation remains highly uncertain and much of its macroeconomic data continues to be negative. Nonetheless, Italy presents sound opportunities for returns, and Massimo Trabattoni, manager of the Kairos International Sicav, knows it well. He describes a bona fide structural change sweeping the international landscape.
Syria, China and the United States. International relations, crises that have only been postponed and others on the horizon, history that has been written and history that is yet to come and from which we sometimes learn. Thoughts and views that Alessandro Fugnoli, a Kairos Partners strategist, has compiled in an extensive article published in the monthly “Uomini & Mercati”.
After the Fed’s surprise last week, the German elections have now had their say as well, ending with a clear-cut victory for the CDU/CSU.
Although the results are an affirmation of Angela Merkel, they were disappointing for the FDP, a partner in the outgoing coalition, meaning it will take longer for the new government to assemble. Indeed, without a natural partner, an agreement will need to be reached for a new grosse koalition, most likely with Peer Steinbruck’s SPD.
The Federal Reserve took everyone by surprise with an extremely dovish FOMC (Federal Open Market Committee): Fed Chairman Ben Bernanke explicitly separated tapering from any “magic” employment number. He went so far as to say that because of the way it is measured, the unemployment rate is a decidedly inaccurate gauge of conditions on the job market. In addition, Bernanke dramatically revised US GDP estimates for 2013 and 2014 downward, letting it be known that there will be no scaling back of the Fed’s acquisitions at least until December.
The US financial industry’s stance can be summed up in two words: cautious optimism, as Michele Gesualdi, Kairos Partners funds of funds manager, noted after a recent trip to New York and Boston, where he met with a number of operators to gather their thoughts and predictions on a few key issues.
Appointed Senior Portfolio Manager, with a keen interest and deep involvement in an outstanding long-term project, Livio Dalle has officially joined the Kairos Partners team as a highly qualified new resource poised to take on the challenges that the complex market will throw his way in the months to come.
KIS Italia, KIS Key and KIS Global Bond: these are the new SICAV sub-funds that Kairos has launched in the past few weeks. These three instruments further integrate and enrich the host of products already offered by Kairos, one of Italy’s premier asset management companies with a focus on financial innovation since inception.
2012 Premio Alto Rendimento Sole 24 Ore and 2013 UCITS Hedge Awards: these are only two of the prestigious awards that Kairos has most recently received, highlighting its results and investment decisions.
In particular, Kairos was awarded the Premio Alto Rendimento as top Hedge Fund Specialist for the performance of its Kairos Fixed Income Italian Funds.
The first major milestone was recently reached: on June 1st, the Bank of Italy authorized Kairos Julius Baer SIM to begin operations. Resulting from the strategic partnership of Kairos Investment Management S.p.A., a leading Italian asset management company, and Julius Baer Group Ltd., a Swiss private bank boasting the most significant international presence, the brokerage firm is “a long-term project focusing its attention and investments on Italy, considered a market of great interest,” announced Paolo Basilico, founder and Chairman of Kairos.