Asia, but with discernment

3 March 2014

Japan promises to be one of the financial investment world’s brightest stars in 2014 according to Michele Gesualdi, the manager who heads Kairos Partners’ multi-manager team and keeps a close eye on geographical and economic scenarios day in and day out as he puts together the Milanese investment boutique’s offer of multi-manager funds. “Following the January correction, we are watching with interest as the government aims to give some thrust to the country’s economic recovery. Indeed, after the stagnation of the past few years, we are getting a glimpse of plans for important stimulus, destined to significantly impact a scenario in which the number of active players is small. The potential for operators already on the ground with a solid network of contacts and information is excellent.”

Gesualdi and other managers based in London and New York monitor all six continents and every year they hold direct meetings around the world with local managers, giving each member of the team a deeply glocal – local and global – view . “This added value enables us to conduct deeper analyses of situations, as we can use not only macro data but local and detailed information as well”. The nuances therefore arise when, for instance, emerging markets are considered: “While in these contexts, the old economy consisting of commodities, banks, etc. is struggling with serious difficulties, it is important to take into account that the domestic consumer market is completely bullish. Consequently, while it is very likely that 2014 will remain volatile, it is possible that we will be able to achieve very satisfying returns.” Asia, in any case, remains the most promising of emerging regions.

But what about Europe? “We are certainly seeing a rallying trend and a recovery from the low, but the continent is still plagued by too many problems. Flows will slow and doubts remain as to certain countries’ economic solvency. This why,” concludes Gesualdi, “on this front, it’s wise to be selective.”