Friday, March 24, 2023

Focus Risparmio’s interview with Massimo Malvestio, Founder of Hermes Linder Fund

Massimo Malvestio worked full-time as a lawyer when he decided to establish Hermes Linder Fund SICAV in 2004. In 18 years of activity, the fund has achieved amazing results. Interviewed by Italian magazine “Focus Risparmio”, the lawyer and founder of Hermes Linder Fund recalls the main steps of his career, from the beginning to its current roles, including those of Portfolio Manager and Chairman of the Investment Committee at Praude Asset Management Ltd.

Massimo Malvestio

Massimo Malvestio: the beginning of his career in the legal field and his other passion

Before devoting himself to the financial sector, Massimo Malvestio worked in the legal field in which he gained a long and relevant experience. He graduated in Law in 1985, then he enrolled in the Register of Lawyers and qualified to represent clients before the Italian Supreme Court. He cofounded his own law firm shortly after, calling it “Studio Legale Barel Malvestio & Ass.”, which then became known as “BM&A”. He ran the commercial law practice as Managing Partner while specializing in banking law, financial markets law, governmental enterprises, and financial crime law. He also operated as legal consultant to a variety of listed companies and enterprises, as well as to several Italian and European banks. But something was missing. There was a passion he had that he felt needed to be cultivated. It was his passion for financial matters, which actually grew way before the founding of Hermes Linder Fund SICAV. It all began when he was just a newly graduated and started a collaboration with the legendary asset manager Mario Zarattini. He recalled being “a great friend of his” and said that even before he moved to Lugano to establish his own bank, they had discussed many projects in the financial sector together.

Massimo Malvestio on the establishment of Hermes Linder Fund: how it started and the fund’s strength

The combination of his passion for financial matters with his extensive legal expertise and financial analysis, eventually led to the establishment of Hermes Linder Fund. It only took a few years for the fund to record excellent results, including a track record of performance of over 600% (compared to the fund’s launch value) and an accrued performance for investors of 11.85% (net of fees). The fund is today managed by the asset management company that Massimo Malvestio launched in 2009: Praude Asset Management Ltd. When asked about what is the strength of Hermes Linder Fund SICAV, the expert says that it resides in “legal arbitration and its in-depth knowledge of the economic, financial and regulatory environment in which the fund operates”. But also in its “value investing approach”, which is based “on joint studies of companies’ financial data, business plans and regulatory environments”. That is what drives the fund’s management team. The fund’s strategy is so effective that it was even recognized by important international awards such as the Thomson Reuter Lipper Fund Award for “Best Fund” over 3 years (“Equity Europe 2017” category) and a “five-star rating” by Morningstar.

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