A stormy climate has dominated markets over the past few days, which this is precisely why, pausing to reflect on the widespread agitation, we unearth ideas that help us decide what our next few moves should be, according to Michele Gesualdi, head of the Kairos multi-manager fund management team that focuses in particular on the strategies adopted for KIS America
On September 29th, clients, partners, reporters and countless friends crowded the new Kairos offices on Via San Prospero, in the heart of Milan. Hundreds of guests gathered for the official housewarming of the Group’s new headquarters, which opened its doors to those for whom the Group’s 140 + resources work every day.
This “open house” coincided with the fifteenth anniversary of the business which, established in 1999, has grown over the years and now operates around the world with offices on major international financial markets.
A crowded press conference was held on the morning of September 24th as Kairos management publicly debuted the new headquarters on Via San Prospero, Milan. Meeting with reporters from major national newspapers, Paolo Basilico, the Group’s Chairman and CEO, and Fabio Bariletti, General Manager, made the most of the occasion to announce upcoming projects, objectives and reaffirm the identity of Kairos, which turns fifteen this year.
“Until now, 2014 has been an ambivalent year for hedge funds. Generally speaking, active management underwent consolidation after an excellent 2013, but already as we look at early September, there seem to be signs of a dramatic improvement”. In a nutshell, expectations are high for the future of hedge funds according to Kairos manager Michele Gesualdi, who keeps a close eye on scenario developments from the Group’s London office.
Seventeen years after Hong Kong’s “return” to China, we are about to witness another momentous watershed for these two economies. The Shanghai-Hong Kong Stock Connect is slated to take effect on October 13, “a bilateral program giving investors holding accounts with Hong Kong brokers access to stocks listed on the Shanghai market and Chinese investors access to the Hong Kong market”. Kairos analyst Moreno Tatangelo, based in London, explains the details and outlook of this groundbreaking new program.
In the last few weeks, Kairos managers met several New York-based operators and had an interesting debate with them on some of the most pressing scenarios for the economic and financial community.
During these exchanges, what emerged in the first place was a markedly more positive view of emerging market trends, particularly owing to a less pronounced slowdown of the Chinese economy: while it failed to meet the government's target, China's 6 percent growth rate was enough to allow many other emerging markets to grow.
China’s bright prospects outnumber the dark spots on various fronts as it takes a more constructive stance to the market’s cyclical area. This is, in a nutshell, the impression of certain Kairos managers after a series of meetings with about thirty local Chinese managers in recent weeks.
The quantitative easing policies currently starring in the strategies of major central banks worldwide have been having, and will continue to have, a determinant impact on financial market performance. Massive liquidity, combined with a situation of substantial financial repression, is giving rise to trends and prospects that are very much on Kairos managers’ radar and which they are carefully considering as they work out the company’s investment fund management strategies.
"We are relatively optimistic on the prospects of American companies and on the overall economic trend in general; the present economic phase is one of growth, but the growth rate is not so fast as to raise strong concerns over interest rates, at least not in the short term." These were the words of Michele Gesualdi of the Kairos management team while discussing the US economic and market outlook.
“We expect to see a lateral movement in terms of the compression of spreads and a marginal drop in rates over the next few months on international financial markets. This is nothing revolutionary on a market that is, all things considered, fairly stable, the result of dynamics that have already played a large part over the past three years”. This is how Kairos manager and bond specialist Rocco Bove sees the current scenario.