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The fund that rents 23% investing in the 'app' that your children have on mobile

2020-07-09T07:52:01.585Z


His advisers are two thirty-something passionate about technologyWhen the telework Andromeda Value exploded it was already there. This investment fund, managed by Renta 4 and advised by two thirtysomething passionate about technology, had been tracking the market for video conferencing applications, cloud storage companies and content platforms for years. This millennial fund was born in 2015 to take advantage of the digitization of society, and the Covid-19 pa...


When the telework Andromeda Value exploded it was already there. This investment fund, managed by Renta 4 and advised by two thirtysomething passionate about technology, had been tracking the market for video conferencing applications, cloud storage companies and content platforms for years. This millennial fund was born in 2015 to take advantage of the digitization of society, and the Covid-19 pandemic has only reinforced its theses.

The profitability obtained during 2020 exceeds 23%, while Spanish investment funds are losing, on average, 4%, due to the financial turmoil caused by the coronavirus.

The companies that focus the attention of Flavio Muñoz and Juan de Dios are usually on the phone of any Spanish twentysomething (although not only). In recent years they have invested in Facebook (Instagram, WhatsApp), Alphabet (Youtube, Google, Hangouts, Gmail. Google Maps ...), Amazon (Prime Video, AWS), in television and movie platforms (such as Netflix).


Video games and consoles

Flavio Muñoz, President of Andromeda Capital Value.

These great technologies, known by the acronym FANG, have been the engine of Andromeda's returns, but its advisers go further. Muñoz and De Dios have thoroughly analyzed the concentration dynamics of food delivery companies (Deliveroo, Just Eat, Uber Eats); They have plunged into the video game market, valuing the acquisition of Minecraft by Microsoft or the participation of the Chinese giant Tencent in Epic Game (creator of the popular game Fortnite).

One of the best funds since 2015

The average profitability of Spanish investment funds during the last 5 years has left a lot to be done (due to the bad year 2018 and the emergence of the Covid-19 this year). On average, they have rented 0.4% per year (discounting commissions), according to data from the association of fund managers (Inverco).

In this same period, Andromeda Value (with 32 million euros of assets under management) has achieved an average annual return of 13%, only surpassed by a couple of pure technology funds (Caixabank Comunicación Mundial, with 16% and Rural Tecnológico , with 13.47%). However, Andromeda has had less volatility.

On average, US Stock Exchange funds sold in Spain have risen 6.2%.

When no one yet knew what CRM (programs and applications for customer management) were, they plunged into the purchase of Qualtrics by the European technology company SAP.

They have also always kept a detailed track of the world of consoles. Unlike most managers, who only have news of Xbox, PS4 or Nvidia when one of their children asks for it for Reyes, Muñoz and De Dios have investigated the movements of the video game market and the interrelationships between different operators.

The last big bet of the firm, already in 2019, were the platforms to favor the digitization of companies and teleworking, which led them to bet on Okta, which offers identity control services; Salesforce, CRM expert; or Service Now, for cloud storage.

Apart from the technological commitment, Andromeda's advisers have been able to fully hit the market times, at the end of the first quarter with 46% liquidity, thus cushioning the largest stock market corrections.

Chance is a recurring factor in the investment fund industry. Managers who do well over a period often do worse in subsequent years. But Andromeda Value has shown consistency. Their average return in the last five years is 13%. In 2018 they avoided losses, when all the Stock Market funds registered sharp falls.

Source: elparis

All news articles on 2020-07-09

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