Expert Massimo Malvestio comments on the financial situation of Europe

Massimo Malvestio, Italian lawyer based in Monaco and Founder of Praude Asset Management Ltd, was interviewed by the magazine “VeneziePost” on the financial situation of Italy and Europe. According to the expert, there is a very high risk of a systemic crisis.

Massimo Malvestio warns on the possibility of a systemic crisis

Two years ago, Massimo Malvestio had already predicted the inflation surge that is currently taking place. That was when all the authorities kept reassuring that they had everything under control and that inflation wasn’t a problem since it was long gone. Time has proved him right and now he is giving us some more warnings. According to the lawyer, there are several red flags indicating that a systemic crisis may be on the way. The main problem is inflation. “If we could stop it, central banks would be able to lower rates and go back to their favorite activity, that is printing money” – says Massimo Malvestio – The cure for inflation would probably lead to other side effects, maybe very severe ones, but these could be solved”. Then he goes on explaining that rates have been raised so fast in order to slow down some dynamics actually impossible to predict. That is proven by the fact that rising rates has not helped fight the inflation in any way. In addition, the population decline pushes towards wage increases, which enhances the risk of an inflationary spiral. “And once it begins, it will be impossible to stop”. ESG politics and reshoring are others push factors, as well as PNRR resources. “These forces will fight against deflationary forces like technological progress and immigration”.

Massimo Malvestio: bailout will be the only way out

The crisis will not only affect financial institutions but insurance companies as well. “All the insurance companies that in the last years have invested in long-term securities and have underwriters that could redeem at any time, are exposed to potentially considerable losses”, reports Massimo Malvestio. It will be up to the Government to decide whether or not to take action, in this case. But when it comes to banks, it is a different matter. “At the end of the day, it will be inevitable to have to turn to public money and therefore use taxpayers’ money to save the system, again – says the lawyer – As much as it costs and though it may be unfair, it will still be the most convenient solution if compared to a banking crisis. There is no other way out”. The same thing happened in Switzerland with Credit Suisse: the State had to make up for the deficits and the Central Bank had to give a 100 billion of liquid funds. Otherwise, UBS would have never taken it. It must also be said, however, that in the last years banks have been subject to such a high degree of regulation that if they cause a problem, their regulators are to blame as well. According to Massimo Malvestio, bailout seems then a “solution coherent with the fake liberalism of recent years”.

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: 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.

The economic present and future of Veneto: Massimo Malvestio’s analysis

Massimo Malvestio is an established lawyer with great expertise on legal and financial matters. In the past, in addition to working as legal consultant to many banks, listed companies and large enterprises, he also sat on the boards, audit panels and investment committees of banks, asset managers and brokerage houses. As of today, he is Portfolio Manager and Chairman of the Investment Committee of Praude Asset Management Ltd., a well-established asset management company which he founded in 2009. In the interview with “Bassanonet”, he shared his point of view on the economic present and future of Veneto and, in particular, on the existence or not of what is often described as “Zaiaeconomics”.

“Bassanonet” interviews Massimo Malvestio

An expert in finance and local matters in Veneto, lawyer Massimo Malvestio was interviewed with Maurizio Sacconi and Paolo Giaretta on the present and future of the Veneto economy. The interview was conducted by journalist Luigi Marcadella and focused on the existence or not of “Zaiaeconomics”: in other words, “Luca Zaia’s updated vision on the development of the Veneto region”, a vision “capable of overcoming his well-known pragmatism as an experienced local administrator and a person capable of reaching strong consensus, skills that are widely recognized today”, journalist Luigi Marcadella explained in the article. Speaking about the economy in Veneto, Massimo Malvestio pointed out that “export is the element that still represents what Veneto is. A region that is still globally competitive, despite everything and everyone. There is still a productive class of exceptional quality, which is made up of entrepreneurs and workers. When I talk about the productive class, I also mean all those public services that are functional to the competitiveness of the system, such as healthcare, universities and local authorities”.

Massimo Malvestio’s point of view

Is it reasonable to speak of “Zaiaeconomics”? According to the lawyer, some distinctive features of Luca Zaia’s action can be found in having made Veneto a “major player in territorial marketing”: he is “unrivalled in this”, he added. Some examples include Cortina d’Ampezzo being selected to host the 2026 Olympic Winter Games with Milan, the Prosecco Hills of Conegliano and Valdobbiadene being declared a UNESCO World Heritage Site, as well as the success of Prosecco wine in the world. As Massimo Malvestio went on to explain in the interview, the current President of Veneto “just wants to be an administrator of the region, so unfortunately something is missing when the necessary actions are not purely administrative in nature”. It was different in the past with “figures like Rumor, who was not only a Prime Minister but also a political leader”. Today, as a consequence, Veneto has a peripheral role compared to other Italian regions such as Lombardy, Emilia Romagna and Lazio. As for finance in the region, Veneto pays the price of its lack of political representation, as well as of its being “a polycentric region”: according to Massimo Malvestio, the question is therefore to find “a development path that is based on what Veneto actually is: a polycentric territory”. How to make it attractive and competitive? “Veneto still has so many resources and can do it. But action without thought will no longer be enough”, the lawyer concluded.

The career of Massimo Malvestio: areas of expertise and achievements

Massimo Malvestio started his professional path in 1990 with the establishment of “Studio Legale Barel Malvestio & Ass.”, law firm where he successfully led the commercial law practice until 2013. In the past, he also served as legal consultant to several Italian and European banks, listed companies, and the largest enterprises in Northeast Italy. In addition to this, he sat on the boards, audit panels, and investment committees of banks, asset managers, and brokerage houses – both in Italy and abroad. He subsequently entered the world of finance and asset management: he is in fact the founder of Hermes Linder Fund SICAV and Praude Asset Management Ltd.

Massimo Malvestio: from the legal profession to entering the financial world

Massimo Malvestio was born in Treviso (Italy) in 1961. Soon after graduating in Law from the University of Padova, he enrolled in the Register of Lawyers and qualified to represent clients before the Italian Supreme Court. He also passed the examination to become “Procuratore alle grida” at the Milan Stock Exchange’s trading floor. It was in 1990 that he took the leap and decided to found “Studio Legale Barel Malvestio & Ass.” law firm (later renamed “BM&A”). As Managing Partner of the firm’s commercial law practice, he specialized in banking law, financial markets law, governmental enterprises and financial crime law. When he took a step back from the legal profession in 2014, the law firm had 4 offices in Italy and employed more than 40 lawyers. Previously, he embarked on a new professional experience: in 2004 he established Hermes Linder Fund SICAV, which proved to be a very successful fund as confirmed by the results obtained and the international awards received. With a deep understanding of value investing – in particular in major equity European markets – Massimo Malvestio led his fund to record extraordinary results: these include a track record of performance of over 625.57% (compared to the fund’s launch value) and, as of May 31, 2022, an accrued performance for investors (net of fees) of 11.30%.

Massimo Malvestio today and his career as a writer

Hermes Linder Fund SICAV’s excellent performance was confirmed by several international awards, including the Thomson Reuter Lipper Fund Award for “Best Fund” over 3 years (“Equity Europe 2017” category) and a “five-star rating” assigned by Morningstar. The fund is managed today by Praude Asset Management Ltd., asset management company that Massimo Malvestio established in 2009. The value investing expert currently holds the roles of Portfolio Manager and Chairman of the company’s Investment Committee. He is also the author of two books: “Credito Cooperativo – Storia di Uomini Bisogni e Successi in Veneto” (Marsilio, 2006) and “Mala Gestio: Perché i Veneti Stanno Tornando Poveri” (Marsilio, 2012). As part of his writing career, for ten years Massimo Malvestio was a columnist for “Corriere del Veneto” (the Veneto edition of “Corriere della Sera” newspaper). He also wrote several articles on banking and finance matters for research institutes, newspapers and news portals in Italy. As of today, he is a Member of “Society of Trust and Estate Practitioners” (STEP) and, in the past, he spoke at their international conference.

Local matters in Veneto: Massimo Malvestio’s articles

Massimo Malvestio is the current Portfolio Manager and Chairman of the Investment Committee of Praude Asset Management Ltd., a well-established asset management company which he founded in 2009. Before entering the world of finance, he worked full time as a lawyer and also served as a legal consultant to Italian and European banks, listed companies, and the largest enterprises in Northeast Italy. As part of his successful career, he was a columnist for several Italian newspapers and news portals, for which he contributed many articles on banking and finance.

Massimo Malvestio's career as a lawyer and value investing expert

Massimo Malvestio is an established Italian lawyer and an expert in finance and value investing. He dedicated a significant part of his professional path to working as a legal consultant to banks, listed companies and large enterprises. In addition to this, he also sat on the boards, audit panels, and investment committees of banks, asset managers, and brokerage houses. Born in Treviso (Italy), he graduated in Law from the University of Padova in 1985 and enrolled in the Register of Lawyers in 1989. After qualifying to represent clients before the Italian Supreme Court, he also passed the examination to become "Procuratore alle grida" at the Milan Stock Exchange's trading floor. His career started in 1990, when he cofounded "Studio Legale Barel Malvestio & Ass.", law firm which was later renamed BM&A. As Managing Partner, he led its commercial law practice and specialized in banking law, financial markets law, governmental enterprises, and financial crime law. In 2014, he decided to take a step back from the legal profession and entered the financial world. Actually, his passion for finance dates back much further: in 2004, for instance, he had already launched his own fund Hermes Linder Fund SICAV, while in 2009 he had established Praude Asset Management Ltd. Throughout his career, Massimo Malvestio has made available his expertise on legal and financial matters by contributing many articles for research institutes, newspapers and news portals.

Massimo Malvestio's articles for "Corriere del Veneto" and "Nordesteuropa"

Massimo Malvestio was a columnist for "Corriere del Veneto" - the Veneto edition of "Corriere della Sera" - and "Nordesteuropa", where he contributed several articles on finance and local matters. In his articles, for example, he stressed some crucial problems that had not been given attention for a long time. These issues eventually emerged and required an urgent solution. This is the case of an article he wrote for "Corriere del Veneto" in 2007 emphasizing the need for action to renew the water network in Valdobbiadene, in the province of Treviso, Veneto. These actions became necessary in the summer of 2022, when Italy faced a lack of rainfall - particularly in the northern Po valley - and the government declared a state of emergency in five northern regions due to the drought. Another of his articles was recently quoted by the Italian news portal "VeneziePost", which interviewed the expert on several crucial topics, including the upcoming recession and the rising inflation. One year ago, the expert said that "if an inflation rate of 5% comes, it would mean that the huge stock of long-term and fixed-rate debt of banks, insurance companies and pension funds would suffer enormous losses". As he emphasized, this is "a completely uncharted terrain" comparable to "being on a lake of gasoline: as long as nobody lights a match, nothing happens". However, as of today, everyone believes that the recession will bring back inflation: if the inflation rate were to be around 5%, "the lake of gasoline" will catch fire anyway and there will be a great redistribution of wealth, as explained by Massimo Malvestio in his article.