Dorin Danescu, chairman of Star Asset Management mutual fund management company, is seeking opportunities among firms that are less visible on the Stock Exchange, while still betting on blue chips, as well.
Dorin Danescu early this year left SIRA to take over the management of a new company, Star Asset Management, and has already launched two new mutual funds, Star Focus and Star Next. He derived the best yield on the market with Omninvest fund last year, mainly owing to investments in less liquid firms.
Danescu is betting on a highly diversified portfolio, built through a thorough research of issuers’ financial situations. Whereas SIFs and banks are the basic constituents of the two funds’ portfolios, the company is also focusing on small issuers with a high growth potential, which may eventually make the difference between two funds.
“It is clear that mutual funds’ portfolios are alike in terms of investments in SIFs and banks. This is why small issuers can make the difference. Industrial companies, for instance, are very interesting to a mutual fund, but there are two problems related to them: they lack liquidity and they do not have sufficient shareholder dispersion,” says Danescu.
Star Next, the equity fund managed by Star Asset Management, at the end of the first half had 24 companies in its portfolio. These included aeronautics companies such as IAR Brasov and Aerostar Bacau, Mittal Steel Roman pipe producer and Electromagnetica electrical equipment producer, whose stock registered some of the biggest gains on the Stock Exchange in the first eight months of this year.
However, the basic components of Star Next portfolio are SIFs, accounting for a quarter of its net asset, banks and oil companies, namely the liquid stock on the Stock Exchange.
Star Focus diversified fund holds an equity portfolio largely including liquid stock, as well as stakes in two pharmaceutical companies, Antibiotice and Zentiva (the former Sicomed) beside SIFs, banks and oil companies.
Danescu says he has not made a habit out of watching the portfolio movements of the other asset managers and does not believe one can speak of trends in terms of the management policies related to the funds on the market.
The assets of the two mutual funds managed by Star Asset Management have increased by more than 4.2 times since launch. The two funds have managed to raise around 1.2 million euros (4.2m RON) in the first five months after they were launched. At present, the two funds hold total assets worth above 1.56m euros (5.5 million RON).
Star Asset Management is one of the youngest investment management companies on the market. It was set up this year and is controlled by Georgeta Danila, wife of BCR chairman, Nicolae Danila.
Star Asset Management
One of the youngest investment managers on the market, set up this year
Is looking for opportunities among less visible firms on the Stock Exchange while still betting on blue chips
Has launched 2 mutual funds, Star Focus and Star Next
Star Next at the end of the first half included 24 companies in its portfolio
SIFs, banks and oil firms are the basic components of Star Next portfolio
Star Focus portfolio includes largely liquid stock, SIFs, banks, oil companies and stakes in two pharmaceutical firms