Kairos European Long/Short

The fund is an active Equity Long/Short strategy mainly focused on European markets. The portfolio is managed by Marcello Sallusti (founder of Engadine Partners; ex. Egerton) who invests based on fundamental analysis with a traditional bottom-up approach. The long portfolio consists of company that have demonstrated over time the ability to grow through a variety of economic cycles, to reinvest at returns above the cost of capital, to generate sustainable and predictable cash flows with a strong competitive positioning and quality management aligned with the interests of shareholders (70% compounders, 30% future compounders). The short portfolio acts a natural hedge to the long portfolio but also aims to be a profit center even in the case of a strong market (due to a bias towards unsustainable business models, structural decliners, etc.). The portfolio is relatively concentrated with a max of 30-50 investment ideas on both sides of the book. The team at Engadine was appointed as sub-investment manager in 2021.