A step forward in your business, but a prudent step. Valentum Asset Management guards his back with a new fund for large companies three months after the coronavirus crisis. The manager of Luis de Blas and Jesús Domínguez, with more than 90 million euros in assets in its flagship, launches its second fund, with more liquid values than in the previous one.
The manager, who now celebrates its second year of life, has registered the fund Valentum the Great, an evolution towards flexibility and large capitalizations with respect to what is today its star Valentum fund. Its new product focuses on larger listed companies and, above all, high liquidity. “The vehicle will maintain the same Valentum investment philosophy, but we want it to be very liquid. This will also give us the opportunity to make derivative strategies, something we already do for Valentum's large values, but applying it to most of the fund's values, ”explains Domínguez, one of the two founding partners and co-manager. In his opinion, the new strategy of the boutique "It contributes alpha and subtracts volatility".
Its flagship is a combination of two distinct but complementary investment styles. On the one hand, the inheritance of ‘value investing’. It seeks to invest in high quality companies, with a solid balance sheet, a trustworthy management team and proven experience, a business strategy that favors long-term organic growth and a listing price below its target value. On the other hand, it adds the short-term ‘momentum’ factor, where they strive to find catalysts that will bring out the value of companies after restructuring, changes in the management team, or strategic movements of a geographical or sectoral nature. For the year, it was down just over 8% after recovering a good portion from the lows at the end of March, although last year it rose 15.7%, according to Morningstar.
Commercially, however, they do have differences. In the new Valentum Magno, the management fee is 1% and the success fee, which rises to 9%, will be charged on the part of profitability that exceeds 3% per year. On the other hand, at Valentum, the management fee is 1.35% and the performance fee, although it is also 9%, does not carry any conditioning factors. On the other hand, although in Valentum the minimum initial investment is 1,500 euros, in his new fund there is no such requirement and, therefore, the minimum is what the participation is worth at all times.
According to Domínguez, the manager has no further plans to launch other funds in the short term and the arrival of a new product "does not change our vision or business objectives."
Valentum AM is expanding its showcase precisely at a very difficult time for the ‘value’ managers of ‘small caps’. A Natixis Investment Managers recent barometer on Spanish portfolios The failure of these two styles stood out from the end of 2019 to the fall to market lows last March, in the worst moments of the pandemic, with declines of over 30% in the first case and 20% in the second in its respective MSCI indices. As the saying goes, renew or die.