Michele Pedroni takes over management of DECALIA’s European equity fund

DECALIA Asset Management has entrusted Michele Pedroni with the management of DECALIA EUROPEAN CONVICTION, its European equity fund that aims to take advantage of the inefficiencies that exist in European markets. Michele Pedroni is now taking on the role of lead fund manager of the fund, after having fine-tuned its management process for 9 months.

A talent-spotting vocation

In order to offer investors the best management quality, DECALIA does not confine itself to devising innovative strategies but also acts as a spotter of new, high-potential managers. This is particularly the case with the recruitment of Michele Pedroni.

“To create added value and generate performance, we have to invest in tomorrow’s fund managers”, pointed out Alfredo Piacentini, Managing Partner.

Michele Pedroni is taking over responsibility for the fund, which was managed by DECALIA’s investment team since it was launched at the end of 2015. Before joining DECALIA in Q2 2017, Michele Pedroni worked for 7 years for a Swiss asset management banking group, initially as an equity analyst, then as a fund manager in the Global Equities team. Michele Pedroni holds a diploma in Economics from the Universita Cattolica del Sacro Cuore in Milan and a Master degree in Finance from Bocconi University, Milan.

A strategy with strong convictions.

DECALIA EUROPEAN CONVICTION stands out by having a portfolio with strong convictions, focused on 50 to 70 companies. The opportunistic and flexible investment approach does not seek to replicate a benchmark index, nor does it have a style bias or geographical or market-capitalization constraints. The portfolio efficiently combines core long term investments with opportunistic calls. The management philosophy is based on 3 main principles:

  • Focus is placed on quality, by giving preference to companies with a strong business model, a solid competitive position and sound balance sheets.
  • A “growth” orientation, by giving preference to companies that have proved their ability to achieve superior growth and that offer good long-term visibility.
  • Reasonable valuation levels, by selecting stocks that earn a substantial free cash-flow, by watching closely their relative valuation and by conducting downside risk analyses.

“We are continuing to develop our range focused on the four main investment themes: disintermediation in the European banking sector, the quest for yield, new consumption trends and market inefficiencies. The last theme sets the framework for the DECALIA EUROPEAN CONVICTION fund, which has an active share of more than 80%,” said Xavier Guillon, Partner and Head of DECALIA funds.