Their lifestyle is resolutely contemporaryOf course it is often that of a rise in verbalRed orange blue emerald green overseasThe subject will soon be on the agenda of the twentysevenWatches and accessories would stand betterFor ten years all the great choices were consensual despite appearancesSegmenting by income is no longer the panaceaThis famous technological frontier new go westThe Côte d'Azur and IledeFrance are first lineIt is a well any problem today of Lufthansa stockIn September, François Genovese took a large heritage decision: co-lead for management in Quilvest & partners asset management teams, he decided to keep safe its collection of "Echos"! "They will be to collectors," he said. "And then, I want my children to understand the amount of historical events that have unfolded in so little time."
Not that the crisis has reached it by surprise: "we sensed the since 2006, recalls, memo on the economy of the time to support." We had identified it as a classic real estate recession. Also we were we disengaged from banks, the land and the values of the MGB. "The portfolios were already less exposed to the risk.
Moreover, it has never been in the habits of its parent to venture into complex, hardly explainable products to its customers. "When we think that structured products are sold by telephone!" remembers François Genovese with horror. The Quilvest displayed caution helped management teams live more calmly than the days of total madness markets. However, the installation of the market in the irrationality still shook it.
"It is currently impossible to predict the duration or to measure the economic scale of the crisis." This is why it should be back the horizon for investment portfolios. Specifically, the Pocket actions must be accepted as little liquid for the next twenty-four months. During this period, he must accept a volatility of its assets, but this attitude to avoid selling at the wrong time.
His philosophy:
anything, woe is good
The period is difficult, but it does not seize the opportunities that arise. François Genovese studied more closely the fundamentals and prospects of companies taking into account of volatile markets and risky liquidity conditions. Therefore, he pilot the sicav and CPF daily with a wheel of cash around 15 to 20 of the average outstanding for a year. The choices made in different portfolios are always of the same approach. It is to optimize the yield-risk couple. "It is the only way to create value in the medium-long term." What does not, on a daily basis, of the opportunities for which managers know argue their beliefs.
He loves:
the strong haircuts
Companies such as CGG Veritas, Peugeot, Bouygues, PPR or Saint-Gobain have strong haircuts from their own funds. "We love this kind of values, especially when their courses integrate a beautiful net cash, to the example of the Group Hotels Regina." We also like companies with low capital intensity, because they are likely to adapt to the new economic situation. Finally, we believe companies producing goods or services of first necessity. For example, companies specialized in the treatment of waste (Séché environment or Veolia for the international) or even the pharmaceutical (Sanofi). In summary, in stock markets in low visibility, our taste for prudent management is oriented more on sectors that will be worn by the growth of the world's population and its consequences in everyday life (waste, power, renewable energy). Number of companies currently displayed values of assets largely underestimated by the market. "There is no doubt for us that their titles should start rising, not only for valuing companies at their fair value." But this will require that markets are again normally.
He does not like:
the growth by leveraging
Excesses in this area have occurred these past three years. "We believe especially at Société Générale in Russia, Steria, Pernod Ricard, Lagardère or Wendel." Similarly, we avoid an unstable shareholding or variable-owned companies as activist investment funds with the sole purpose is the rapid increase in value. Imposing in the capital of companies because there have been specifically invited, these pirates of investment are seeking to influence the strategy of the companies (which translates to sales of assets...) to increase the profitability of their investments. Their action is part of a logic of speculation and creating value in the short term that may affect the conduct of a prudent development strategy as often implemented in family corporations.
"Finally, despite their low valuation, we exclude banking, real estate and construction both the lack of visibility of their prospects as due to an economic reality already indicating a deep recession."
