Wikimedia CommonsGabriel Politzer, nuevo jefe de Gestión de Activos y director de Estrategia. BigSur contrata a Gabriel Politzer como jefe de Gestión de Activos y director de Estrategia
Gabriel Politzer will be joining the BigSur Team in Miami as Head of Asset Management and Chief Strategy Officer. He has over 30 years of expertise at leading financial institutions, including JPMorgan, UBS and ING. Politzer has extensive experience in trading and investing in several asset classes, and has also served as an advisor to several senior government officials, including ministers of finance and Central Bank governors. He served as Chief Strategy Officer of Patagon, an equity brokerage and online banking firm in the U.S., Europe and Latin America, which was sold to Grupo Santander for $750mm in 2001, reported the firm to Funds Society.
Over the past five years, Big Sur main focus has been on building the best internal platform for their client families and creating a dynamic team which fully represents their values. While they will continue to put forth effort on the improvement of their platform- they are ready to start focusing on growing their business. Gabriel will help with both the improvement of the platform and growing of BigSur’s business. He will help enhance the risk control and efficiency of their investment process, further strengthening their investment platform. Gabriel will be a key player in BigSur’s Strategic Plan for growth, focusing on implementing strategy as well as creating initiatives which would bring extra capacity (allow for scalability) or bring new/incremental sources of revenue.
BigSur is enriching the intellectual capital of their platform and team by bringing someone of Gabriel’s profile and experience. As they aim to be a leading global multi family office, they believe in hiring talented and dedicated professionals such as Gabriel to help build a better BigSur.
Wikimedia CommonsFoto: Andreas Tusche. One Thousand & One Voices invierte 300 millones de dólares en crear riqueza en mercados emergentes
One Thousand & One Voices (1K1V), a movement of influential families investing relational, intellectual and patient financial capital to profitably accelerate prosperity in developing markets, today announced its formation. The announcement is being made in Cape Town in conjunction with the World Economic Forum on Africa.
Influential families conceived of 1K1V to help increase economic opportunity for families in developing markets. Each family’s capital is three-dimensional: relational capital leverages member family connections and reputation, intellectual capital leverages their business and industry knowledge, and patient financial capital provides the funding that developing-market businesses need to grow.
“One Thousand & One Voices was established with the belief that the pathway to economic freedom — real prosperity for millions living in poverty — is through values-based private investment grounded in the time-tested principles of free enterprise,” said Dr. John Coors, chief executive officer of technical ceramics company CoorsTek and one of the movement’s initial family members.
1K1V intends to deploy $300 million in sub-Saharan Africa and similar or larger amounts in other geographies. Although 1KIV’s initial focus is sub-Saharan Africa – a region now experiencing robust economic growth but one that carries a substantial legacy of poverty, inefficiency, and undercapitalization – the movement is expected thereafter to focus on Latin America, Southeast Asia and Eastern Europe. 1K1V expects to use leading edge, proprietary tools to predict, measure and report impact.
1K1V’s model was designed to provide financial capital that is sufficiently patient to accelerate prosperity in developing markets, addressing a major shortcoming of traditional private equity and many impact investment funds operating today. 1K1V does not impose arbitrary limits on the duration of its investments, making it possible to provide capital that is as patient as may be required, which reduces the risk of impaired returns due to forced exits.
Foto: Akarsh Simha. Sumitomo Mitsui Financial Group, autorizado para operar como holding financiero en EE.UU.
Sumitomo Mitsui Financial Group (SMFG, presidente Koichi Miyata) and Sumitomo Misui Banking Corporation (president: Takeshi Kunibe) have received notification from the Board of Governors of the Federal Reserve System that our elections to become Financial Holding Companies (FHC) under the U.S. Bank Holding Company Act are effective as of May 7, 2013, said the firm in a statement.
SMFG has to date, engaged in intestment banking and securities business in the U.S., such as M&A advisory and brokerage services, through a U.S. subsidary. By obtaining FHC status, SMFG can significantly expand the scope of services we provide in the U.S. including the underwriting and trading of securities and other investment banking services.
SMFG plans to implement numerous iniciatives in the near future, including the underwriting of bonds by its subsidiaries, to futher enhance the services offered to clients in the U.S., the world´s leading financial market.
Pedro A. Jiménez, Partner-in-Charge. Jones Day opens in Miami as part of Latin America practice expansion
The global law firm Jones Day announced today that it will open an office in Miami, the firm’s first office in Florida, 16th in the US, and 40th in the world. Pedro A. Jimenez, a Miami native and partner in Jones Day’s Business Restructuring & Reorganization practice, will serve as Partner-in-Charge. Enrique (Rick) Martin, who recently joined Jones Day as a partner in the Mergers & Acquisitions practice, will serve as the Office’s Administrative Partner in Miami.
“The Mexican market is maturing and internationalizing at a rapid very pace, and as it has, our Mexico City office has continued to grow and expand its reach.”
The firm’s expansion to Miami reflects its continuing commitment to the rapidly growing Latin America market. The firm established offices in Mexico City in 2009 and São Paulo in 2011, but its clients’ needs in the remaining 18 countries in the region also can be met most effectively from Miami. The office will focus on capital markets, mergers and acquisitions, lending, project finance, and restructuring in Latin America. It will, in addition, have a significant focus on dispute resolution, including litigation, arbitration, issues and appeals, labor and employment, intellectual property, executive compensation, and health care.
“In years past, the Latin American practices of many major law firms, including Jones Day, were centered in New York City, primarily to access the debt and equity markets,” said Steve Brogan, Managing Partner of Jones Day. “Today, corporate and business leaders in Latin America have increasingly made Miami their point of contact in the U.S. Along with our substantial capabilities in Mexico and Brazil, a presence in Miami allows us to establish a deep bench of gifted lawyers who can effectively guide our clients seeking to do business in the region. An equally important reason for opening in Miami is to handle the growing litigation docket coming out of that state. Over the last half decade, Jones Day lawyers have tried more significant civil cases to verdict in Florida than any other leading law firm in the country. Our office in Miami will be staffed by lawyers who have the experience and ability to try cases throughout Florida.”
“The Mexican market is maturing and internationalizing at a rapid very pace, and as it has, our Mexico City office has continued to grow and expand its reach,” said Fernando de Ovando, Partner-in-Charge of Jones Day’s Mexico City office. “Our office in Miami will be an ideal location to assist clients in outbound and inbound transactions and disputes, and efficiently serve clients in a wide range of matters throughout Latin America.”
Wikimedia CommonsFoto: Mewiki. El mercado laboral de la City recupera el pulso tras la crisis de Chipre
City of London employers have recovered their nerve following the Cyprus crisis, with the number of new jobs rising 19% in the last month says Astbury Marsden, a financial services recruitment firm. Just over 2,600 new roles were created during April 2013, following a sharp dip in March when the number of new roles plunged by 15% compared to the previous month.
The number of new City roles created per month now stands at its highest since October 2012, with month on month increases also recorded in January (213%) and February (3%). Mark Cameron, Chief Operating Officer at Astbury Marsden, says: “After a reasonably optimistic start to the year, recruitment at many City firms slowed in March as the market waited to see how bad the Cyprus crisis was going to get.”
Astbury Marsden points out that City staff also seem to be cautious about switching employer. In April, candidate numbers were up just 1% on March with a pool of 4,560 potential candidates during April, down by 24% on the same time last year. There are now 1.75 qualified candidates per new role, down from the 12 month average of 2. Mark Cameron adds: “Spring is traditionally peak hiring season in the City as candidates look for new roles after their bonus has been paid. However, we are not seeing quite the same amount of interest from prospective candidates as had been the case in previous years.”
Mark Cameron adds: “Spring is traditionally peak hiring season in the City as candidates look for new roles after their bonus has been paid. However, we are not seeing quite the same amount of interest from prospective candidates as had been the case in previous years.”
Astbury Marsden explain that regulation is still driving recruitment in the City, as banks focus on trimming their businesses back to their most profitable areas in order to manage new capital requirements. Says Mark Cameron: “the banks have a lot of work to do on realigning their businesses back to the most profitable core areas, so we are still seeing a lot of interest in strategists and for skills associated with managing organisational change.”
“A natural consequence of the high-level planning that is going on is that a lot of the other hiring activity is ‘maintenance’ work – finding replacements or acquiring individual high flyers. We don’t expect to see more aggressive hiring resume until banks have clear plans as to which areas they are going to target for growth.”
Wikimedia CommonsYves Bonzon, CIO de Pictet. Los hedge funds, ¿siguen siendo convenientes?
Hedge Funds have performed poorly for the last three years compared to treasuries and corporate bonds, therefore people are questioning their relevance in portfolios. “We believe there’s a place in each portfolio for this kind of investment as long as it is allocated in the relevant asset class and, most importantly, when the mangers are carefully selected fort their skills and capacity to deliver performance”, says Pictet CIO, Yves Bonzon, in this video.
Investment banking faces a leaner, humbler future, says Jonathan Rosenthal, in a Special Report about International Investment Banking published by The Economist, though a select few banks will emerge from the financial crisis even larger and more powerful.
The report posts that revenues in investment banking have shrank from US$350 billion in 2009 to US$250 billion last year, a massive drop that has more to it than the typical cyclical factors.
According to Rosenthal, new regulation, such as Basel III and derivatives regulation is to blame. Investment banking is becoming a less profitable business forcing several players to quit the market. The problem is that big banks post big systemic risks, and regulators would not approve mega mergers in the sector. In the recorded interview Rosenthal explains how European banks are facing stricter capital requirements and as they cannot sell their investment banking business to other players, they are simply being forced out of the business, as has happened with UBS that has decided to scale down dramatically its investment banking operations to concentrate in private banking and wealth management.
The Economist notes how, in 2008 just after the financial crisis exploded, European Banks thought that it was their opportunity to catch up with their American counterparts. For example, Barclays took advantage of Lehman Brothers failure buying its investment bank activities, but in the end, American regulators invested massively in the recapitalization of their banking system whereas European banks are still coping with this issue. As a result, The Economist points out that without any doubt, “Wall Street is Back”.
This special report will be published in The Economist magazine on May 11th, 2013.
Wikimedia CommonsSteven Wieting en una intervención en Bloomberg TV. . Citi Private Bank nombra a Steven Wieting director de Estrategia Global
Citi Private Bank announced the appointment of Steven Wieting as Global Chief Strategist, with responsibility for formulating investment views and strategies for the business and its clients around the world, said the bank in a statement.
Steven is currently Managing Director and US Economist in Citi Research, and is held in high regard for his views including his extensive work on demographic and policy challenges with a focus on the implications for long-term asset market performance.
Steven will report to Eduardo Martinez Campos, Global Head of Investments at Citi Private Bank, and will remain based in New York in the role. He will be appointed Chair of the Global Investment Committee for the Private Bank, and joins the Investments Leadership Team.
Steven joined Smith Barney in 1996 and was appointed Lead Economist for Citigroup’s US Institutional Equities business in 2000. In this role, Steven advised Citi’s institutional investor and government clients globally on using macro developments to guide their portfolio decisions. While serving as both an economic forecaster and advisor to asset managers, Steven examined credit, commodity and foreign exchange market influences as well as corporate earnings forecasts and equity market insights.
He also served as economic advisor to the Morgan Stanley Smith Barney Global Investment Committee until early 2013 and was a voting member of predecessor Asset Allocation Committees at Citi. Prior to joining Smith Barney, Steven was an economics correspondent with Dow Jones, and he also served as a contributor to the Wall Street Journal’s “Credit Markets” column. Previously Steven worked for the US Department of Commerce.
Wikimedia CommonsFoto: Marc Faber at the Robeco World Investment Forum. “We are all doomed”: Q&A with Dr. Doom
Another crisis is inevitable, argued Marc Faber at the Robeco World Investment Forum. So how should investors position themselves? And how can you spot when the asset-price bubble will burst?
Q: Do you believe that current asset prices are an accurate reflection of risks?
A: No, certainly not. I believe that asset prices today have been distorted by artificially low interest rates. If interest rates are at zero, it is difficult to value anything. There is no real value.
Q: Would you say that the monetary easing in the US has been the core of the financial problems we are facing at the moment?
A: Yes, monetary easing and the expansionary monetary policies over the last 30 years, which led to excessive credit growth, have been a major factor in causing the financial crisis of 2007/2008 and the continuous malaise we have up to today. But I would also say that other interventions by governments, their fiscal measures, have also been very disruptive for the economy.
Q: You have talked about how these expansionary policies are like taking a mortgage out on future generations. Can they ever repay the debts that have been built up?
A: Future generations will never be able to pay their debts and the entitlements for retirees. But I also would like to introduce another concept: it depends on what you use the debt for. If you borrow money and build a factory that produces something that results in cash flow and profits, and allows the interest on the borrowings to be repaid, and to have surplus cash for further investments, that it is one story. But if you just borrow money to go on holiday, that is another story.
Q: What is the way out?
A: The way out is to do something different from what we have done in the past. Under the influence of today’s central bankers and neo-Keynesian politicians, there is more stimulation, more government intervention and more money printing. They do precisely the things that led to the crisis. But that is not the right medicine. The best thing would be for all the boards of central banks to resign. We need new people running central banks that have monetary responsibility.
Q: What should investors do?
A: We have to live with the fact that money is being printed. This money will flow into different sectors and different markets around the world. This will not lead to less volatility, it will lead to more. So you will have bubbles in NASDAQ, real estate, commodities, emerging markets and government bonds. Now we have a gigantic bubble in sovereign debt. Investors need to diversify and avoid buying asset markets that have become overly popular.
Q: We are still in the monetary easing phase. What is going to happen?
A: We will have a huge systemic crisis. The last time the financial sector went bust, it was bailed out by governments. The next phase is governments themselves go bust. Before they do that, they print money like there is no tomorrow. We do not know when the crisis will happen. It could happen tomorrow, but it could also happen in three, five or ten years’ time. Like when your computer crashes, there will be a re-booting of the global economy. But before that, most likely we will have high inflation rates, maybe we will have a deflationary collapse and we will have wars. We are all doomed.
Q: Are there indicators that can predict when the bubble will burst?
A: In my opinion, there is already one indicator that is already flashing a very heavy warning signal. Asset prices are going up, but the standards of living of the typical household in Europe and the US—I am not talking about the people who work for Goldman Sachs—are going down. The industrial economy is doing badly. The linkage between money printing and the industrial economy has already broken down. The rich are buying second homes in the Hamptons, luxury apartments in New York City and Mayfair, paintings, gold—all completely unproductive assets. They are not going to build a new factory. They are not going to start a new business. Nothing is being created economically.
Q: Why aren’t they investing?
A: They are not investing because of excessive regulation. Take, for example, ObamaCare. It is an administrative nightmare. People are reducing their business activity. Firms are not investing in the US, but instead they acquire other companies and downsize. They lay off people.
Q: Do you predict a revolution if income inequality increases further?
A: When the masses of the poor become more powerful than the few, the rich have to pay. Usually history has solved this problem through redistribution through taxation or by revolution. The bailout of Cyprus is the beginning: the rich have to pay more than the poor. In Cyprus, there is a social element where they go after the rich. Even in America there are clear signs, like individual retirement accounts being limited to USD 3 million. The writing is on the wall.
Wikimedia CommonsBy NASA. Capital Strategies come into agreement with REYL AM to distribute their funds in Latin America
Capital Strategies, a firm specialized in the representation of international managers with a niche profile, has signed an agreement to distribute the funds of Reyl AM in Latin America.
Reyl AM, is an investment boutique based in Geneva. With more than US$8 billion in assets under management, they offer equity, fixed income, and alternative funds. Their philosophy of investment is based on preserving the capital that generates sustainable alpha across all market cycles.
Nicolás Lasarte, partner of Capital StrategiesPartners and responsible of business development in LatAm comments, “Reyl is an asset management that is very known around Europe, especially in Switzerland. However, they have had no presence in Latin America. Capital Strategies will provide institutional distribution of their product in the region. Specifically Mexico, Peru, Colombia, Chile, Uruguay, and of course Brazil.”
Their flagship is the Reyl Emerging Markets Equities, which was awarded by Morningstar with 5 stars. Launched in 2009 with US$1.7 billion in assets under management, their main focus is based on a process of balanced and disciplined investment that will identify opportunities along all of the sectors, while investing in any capitalization. With a quantitative bias, their objective is to generate alpha in all of the market cycles.
“Besides being a number in terms of return, the size of the fund is very important to us,” notes Lasarte. “It allows us to access to small or medium companies, which is partly fundamental in the universe of emerging markets, by maximizing the uptake of growth of these countries by fund investors.”
“By having a policy in controlling the growth rate of assets like the policy that Reyl has, it appears to us as well that it is fundamental to have this policy in the universe of investment. Other funds with a bigger size have difficulties in investment with little companies because their tickets are way too big which decreases the generation of alpha,” he adds.
