For the past 25 years Consultinvest has distinguished itself as a reliable organizational management, even in moments in which the growth in portfolios has been heavily hit, as it has frequently happened in the past 5 years, by the economic crises and financial markets. Maurizio Vitolo, who has founded, together with some colleagues, Consultinvest 25 years ago and now President of the company, explains his philosophy and his unique approach to absolute return investments.
How does Consultinvest make the difference on the market? What are the company characteristics?
«Consultinvest Sgr SpA investment philosophy has been always focused on the clients needs: this is the reason why we deal with private and professional clients who have been followed us since we started more than 25 years ago. Since then, the same managements team works on a technique aimed to satisfy any investor’s need, both private and institutional».
How to find the right investment for each investor?
«We believe there are not good or bad investments, but good or bad investors. Being a good investors involves a process that requires many ingredients: curiosity, intelligence, technology and the ability to understand the economic cycle we are in. The good investor has be able to measure out and concretely translate math, history, politics and philosophy and he has to contextualize management processes and techniques».
Said that, however, to efficiently invest in all kind of market situations means to know how to anticipate management decisions.
«Being convinced that the capital must be protected by market shocks, forces us to put into practice special and tested techniques able to quickly adapt to constant and increasingly unexpected movements of the financial markets, often due to exogenous variables».
When stock and bond indexes retrace, it is not easy to bring home any positive results.
«We prefer not to be subject to normal benchmark parameter rules: to follow indexes means not to make a selection and to buy everything in the basket as all bonds were of good quality. But we do not even want to follow prophetic models or beliefs: it is not our job to be a guru in finance or to make prediction on price lists. We do not follow market trends: we will always be very careful and a little bit suspicious. For this reason we have always implemented and successfully tested the philosophy of active/flexible management and, thanks to this approach, many of our funds achieve excellent and long-lasting results »
What kind of risks do you face in order to achieve these results?
«We prefer to create Investment tools in the time span indicated by the client, rather than simply apply some risk appetite concepts; our team adopts various risk management strategies, all of which are constantly monitored».
What are the key rules of your investment strategy?
«By setting the portfolios on various duration time targets, we apply, as much as possible, the good rule of assets diversification and decorrelation. This technique gives us the possibility to insert in our portfolios some real talents, bonds or other financial managers, that maybe are qualified in niche markets where we think there might be a value detectible only with great skills, talents that are identified through a meticulous process of searching the entire investment universe. This method gives solidity and stability to our portfolios, allowing us to seize the opportunities that the market keeps offering and broadening the possibility to obtain positive results».
What are the most important factors that guarantee returns on your portfolios?
«Most of our portfolio performances come from the careful consideration of the assets over a specific period of time, creating the right balance between bonds, stock and cash flow: let us not forget that wherever you have volatility, even if it is monitored, the results are much more important».
What are your techniques to counter the risk? How do you handle this variable?
You may be able to counter the risk even accepting greater volatility: assigning a numerical value to the risk makes it a conscious investment and it allows to give a price to any financial instruments. Our financial managers always try to understand if the price of risk is correct, avoiding to take too much risks. Our concept of the risk is the possibility that the investment will produce lower returns than expected».