We are advisors to the Made in Italy Fund,
a mutual fund exclusively focused on Italian small capitalization stocks.

The fund

The Italian stock market is concentrated in financial companies and public utilities. Add ENI in Energy and a few Consumer stocks and you have three quarters of the market. As a result, an investor who buys an Italy ETF, or an “Italian equity” fund benchmarked around the index, is buying those few sectors and therefore dramatically underinvesting in what is the core of the Italian economy – small companies.

The Made in Italy Fund concentrates only on small caps – companies with a market capitalization below one billion euro. They are 80% of the quoted names, but less than 10% of total market value.

The Fund’s objective is to select the best 30 companies within that universe, in terms of profitability, growth and valuation.

Investment philosophy

Markets are not efficient, but continually offer attractive opportunities to active investors who can take advantage of them through diligent analysis of intrinsic value.

Stocks are not bits of paper of a trading game, but represent a fractional ownership of a company, allowing investors to share in the company’s profits.

The Fund selects stocks with the mind-set of a long term investor, who wants to participate in the success of the companies he owns. Its aim is to be a stable shareholder and a point of reference for the best companies in the dynamic Italian Small cap universe.

The Fund’s stock selection is inspired by the principles of Value Investing, following in the steps of Benjamin Graham and Warren Buffett.

Selection process

step 1

Company screening

Constant search for attractive investment opportunities, through a systematic screening of the Small cap universe based on quantitative and qualitative rules, as well as through taking advantage of bargains offered by market volatility.

step 2

Fundamental analysis

Analyses are centred on a direct relationship with top management and regular visits to company headquarters. Selection is based on the history of financial reports and valuation, with emphasis on corporate governance and share ownership.

step 3

Valuation

The aim of the valuation work is to estimate the company’s profitability and growth prospects in order to arrive at a reasonable assessment of its intrinsic value.

step 4

Selection decision

The Fund selects companies where there is a considerable gap between intrinsic value and market price. The magnitude of such margin of safety determines the size of the position.

step 5

Selection monitoring

Once in the portfolio, companies are constantly monitored to ensure the validity of the selection thesis. Position weights are adjusted accordingly.

step 6

Deselection decision

The Fund has a low turnover. Positions exit the portfolio once they close their value gap through appreciation, or in order to leave space to more attractive alternatives.

step 1

Company screening

Constant search for attractive investment opportunities, through a systematic screening of the Small cap universe based on quantitative and qualitative rules, as well as through taking advantage of bargains offered by market volatility.

step 2

Fundamental analysis

Analyses are centred on a direct relationship with top management and regular visits to company headquarters. Selection is based on the history of financial reports and valuation, with emphasis on corporate governance and share ownership.

step 3

Valuation

The aim of the valuation work is to estimate the company’s profitability and growth prospects in order to arrive at a reasonable assessment of its intrinsic value.

step 4

Selection decision

The Fund selects companies where there is a considerable gap between intrinsic value and market price. The magnitude of such margin of safety determines the size of the position.

step 5

Selection monitoring

Once in the portfolio, companies are constantly monitored to ensure the validity of the selection thesis. Position weights are adjusted accordingly.

step 6

Deselection decision

The Fund has a low turnover. Positions exit the portfolio once they close their value gap through appreciation, or in order to leave space to more attractive alternatives.

step 1 Company screening
step 2 Fundamental analysis
step 3 Valuation
step 4 Selection decision
step 5 Selection monitoring
step 6 Deselection decision

Team

Massimo Fuggetta

Chairman and Chief Investment Officer

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Antongiulio Marti

MIF co-manager and SCM relationship manager

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Board of Directors

Massimo Fuggetta

Chairman

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Guido Manca

Board Member

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Alexandros Rammos

Secretary

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Strategic Advisors

Alessandro Ciravegna

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Martin Mellish

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19 February 2021 by Massimo Fuggetta

The great opportunity of Alternative PIRs

Italian Stock Exchange, Made in Italia Fund

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In 2021 Italian savers have at their disposal an extremely cost-effective investment tool: Alternative PIRs (Piani Individuali di Risparmio – Individual Savings Plans). Like the original PIRs launched in 2017, Alternative PIRs enjoy a significant tax advantage: exemption from capital gains tax after a 5-year holding period. Both also have zero inheritance tax. The substantial […]

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