With over 25 years of experience in equity markets, Daniele Scilingo knows his native Swiss market inside out. Under the nanos investment brand, the former Head of European equities of Pictet is now solely focusing on 30-50 Swiss “compounders” he identified and follows closely. These compounders offer high return on capital employed, good cash flow generation and have a management able to allocate the capital they generate in a profitable way, or they pay it back to the investors.
Many international investors perceive the Swiss stock market as a defensive market, and not as a hunting ground for compounders. For Daniele, Switzerland is much more than just watches and chocolate. The country is multilingual, multicultural, and strongly oriented towards foreign markets.
Gates Capital Management's Excess Cash Flow (ECF) Value Funds have returned 14.5% net over the past 25 years, and in 2021, the fund manager continued to outperform. Due to an "absence of large mistakes" during the year, coupled with an "attractive environment for corporate events," the group's flagship ECF Value Fund, L.P returned 32.7% last Read More
Switzerland has been leading the Economist Global Innovation Index for years. The World Economic Forum gives the Swiss the top spot in competitiveness, ahead of Singapore and the US. The country is also ranked first in global talent competitiveness. Many Swiss companies have assumed global market leadership in various industries. Despite the strong currency, exports have been growing at a yearly rate of 3.3% since 2000, more than imports. From this universe of 30-50 compounders, Scilingo invests into a concentrated portfolio of ideally 10-15.
Danieles strategy is available through managed accounts and an equity note – BB nanos Investment Swiss Compounders – listed on and collateralised by SIX. The note has vastly outperformed the Swiss market index not only through the compounding companies but also because of Danieles ability to create significant additional Alpha through flexible position sizing, derivatives structures around stocks, and tactical buying. The note also comes with full transparency and investor-friendly fees: 0% management fee, 5% hurdle rate per annum with high watermark and 25% performance fee above the 5% hurdle.
Swiss ‘Compounders’ Highly Attractive
In this Opalesque.TV BACKSTAGE video, Daniele also talks about:
- Why the Swiss have more “Compounders” than many other stock markets
- The three pillars of compounding wealth
- Investment Process: Three methodologies to establish a firms value
- The importance of having diversified investment drivers in a portfolio
- How to hedge out the bad seasonality effects and unpredictable binary / political events
Daniele Scilingo is a Chartered Financial Analyst (CFA) charterholder and joined Crossbow Partners AG in October 2015 as partner responsible to build an offering in traditional equity products under the nanos investment brand. Before assuming this position Daniele worked for Pictet Asset Management in London and Zurich for 14 years. He was responsible as a Director for the European Equity product, as well as for the restructuring of the Analyst teams and global investment approach. He also built and expanded Pictets Swiss Equities business, which became one of the leading performers under his leadership.
Daniele previously worked for eight years as a sell side analyst specialising in the Chemicals and Medical Technology sectors. He also worked for Bank Vontobel, where he was a senior member of the team responsible for implementing European sector strategy. He then joined Credit Agricole Indosuez Cheuvreux and helped to set up the Swiss Office in Zurich.
Crossbow Partners AG is an independent financial advisor that specializes in tailor-made advice for sophisticated clients with institutional needs. As one of the pioneers in Switzerland, Crossbow invested in active and alternative asset managers since the 1990s. The company was founded by former senior people of renowned family offices and is wholly owned by its employees. The company is supervised by the Swiss pension fund authority OAK BV (Oberaufsichtskommission Berufliche Vorsorge), has a FINMA license as distributor for collective investment schemes and is a member of the self-regulatory association VQF.
BB nanos Swiss Compounders is a collateralized listed equity note issued by Bank am Bellevue, managed by nanos investment. The note offers exposure to Swiss “compounders” with the ability to hedge up to 100% of the market exposure via SMI and SMIM futures, options or warrants.