Ethenea founder says Europe mishandling green transition
Luca Pesarini, founder and senior portfolio manager of Ethenea Independent Investors, does not mince his words, and so the management of the Ethna-AKTIV fund he helped found in 2002 is no nonsense. For instance, in a recent interview, he shows that he does not have a good word to say about European Central Bank policy and expects a return of inflation. He therefore preaches short-term paper for bonds. For equities, he is not negative but still quite cautious (Ethna-AKTIV fund).
‘ECB should raise the deposit rate to 4, 5 or even 6 percent’
Eurozone interest rates will rise further in the near future as evidence grows that inflation has become entrenched, leaving the European Central Bank no option but to continue to hike its policy rates. At Ethenea, ECB watchers believe official deposit rates could more than double from current levels.
Analysis: no end in sight to euro weakness
Panic appears to rule the world’s most liquid financial market, the foreign exchange market. The Bank of England had to announce emergency measures on Wednesday to stop the pound’s dump. Behind the panic is a systemic crisis: a dramatic fall in European currencies against the dollar, an analysis shows.
Not only the pound, but also the euro has been failing against the dollar for more than a year. Falling currencies are eating into investors’ returns and specialists believe that their devaluation against the dollar will not bottom out for the time being.
Ethenea’s Siviero sees Swiss franc, yen as safe havens
With a recession looming in Europe, investors again are on the lookout for suitable safe havens. Ethenea’s investment strategist Andrea Siviero, who manages the firm’s 60-million-euro Hesper Fund - Global Solutions together with Federico Frischknecht, believes the Swiss franc and the Japanese yen are well placed to take up this role, as the Fund has1a position in December 2023 Euribor futures that anticipates the ECB won’t be able to raise rates next year as much as currently discounted by the market.
Ethenea: avoid deep value and overvalued growth stocks
“Avoid the extremes of the market: deep value stocks and expensive growth stocks. It is in the latter segment that the greatest danger lies, given the strong dominance of retail investors. Cathie Wood with its ARK ETFs is a perfect example of this. Good risk management is important in all areas of fund management. And, of course, sustainability criteria are crucial.”