/Long in real assets and emerging markets: learn about Kinea's strategy and main bets
Long in real assets and emerging markets: learn about Kinea's strategy and main bets

Long in real assets and emerging markets: learn about Kinea's strategy and main bets

Kinea’s story begins in 2007, when Bank Boston was sold to Itaú, in a structure little known in Brazil at the time, but which was common throughout the world: an independent manager that has the strength of a large financial institution behind it.

Distribution, branding and support came from Itaú – but, according to Marco Freire, partner and manager of Kinea, the entire analysis and investment process belongs to Itaú manager. Communication takes place in a quarterly committee of partners for alignment.

Freire and Ruy Alves, also manager of Kinea, were the guests of episode 57 of the Outliers podcast, presented by Samuel Ponsoni, fund manager from the Selection family at XP, and Carol Oliveira, coordinator of fund analysis at XP.

Alves reinforces that the manager has a particular culture – and that, despite being born with the link with Itaú , beneficial in several aspects, seeks to have its own way of being, based on an open mind and flexibility. In his view, this was responsible for transforming Kinea into one of the largest independent managers in the Brazilian market.

Kinea emerged as a multimarket manager, but over time it became a platform with various business areas. Today, it has structures in real estate assets, private equity, pension plans, infrastructure, shares, fixed income, in addition to the already structured multimarkets.

Within the multimarket cell, Alves says that the manager works with only a commodity product. Each strategy has a level of risk and liquidity and, therefore, they operate with different potential returns. Freire reinforces the importance of diversity of ideas, and comments that, in the multi-manager structure, the so-called “meritocracy of ideas” is the main pillar.

Structural Inflation

The list of risks and points of attention for the current macroeconomic scenario is long. Freire comments on a possible new “cold war”, which will generate more spending on the part of governments; a potential deglobalization, which could separate the world into two blocks; fiscal policy challenges; and the green transition, which is still a relevant topic.

In general terms, Kinea’s managers even see a slowdown in inflation during the year, but they believe that the issue of “scarcity” will still make a difference. part of the world’s main themes.

“When the American central bank starts to worry about something, we need to worry about something else”, says Freire.

The move considered late by the Fed (Federal Reserve) raises points of attention regarding the future of monetary policies, which generates uncertainty for investors and leads Kinea to maintain a neutral position in relation to global stocks.

Furthermore, Freire reinforces that the world is undergoing a paradigm shift, which began mainly in the 2008 crisis. In his view, growth tends to be lower in the coming years and will demand greater attention in the selection of assets.

These changes reflect, according to Freire, the dynamics of the market. Until now, there was a disinflationary movement and low interest rates. Now, we are in the process of higher interest rates and structurally higher inflation. Managers also see that the digitization of the economy has evolved considerably, but that does not mean that there are no specific opportunities in digital assets.

About the first quarter of 2022, when multimarket funds had high returns , managers credit their positions in commodities (especially oil), in bets on high interest rates in the United States and in a more constructive vision for Brazil.

Looking to the future , Freire points out that the fear of inflation in Brazil is considerably exaggerated and that this view, unlike the market consensus, can generate opportunities.

The full interview and previous episodes can be seen on Spotify, Deezer, Spreaker, Apple and other podcast aggregators. In addition, the podcast debuted in video format on XP’s YouTube channel.

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