Hedge fund manager Amber Capital recently revealed its plans for a new fund focused on southern Europe. The $1.5 billion firm has raised $350 for the new project, primarily from U.S. institutional investors, and launched the Amber Southern European Equities Fund on December 1st.
Amber Capital’s portfolio manager Jose de la Rosa said: “We are convinced that we are seeing the stabilization of the macro in southern Europe. We are not expecting strong growth but we firmly believe that the structural reforms since the start of the financial crisis are starting to pay off.”
According to de la Rosa, the fund will especially focus on Spain as a result of its new banking system. In general, countries in southern Europe are undergoing a “slow re-industrialization,” he said.
“In 2014, Spanish auto production will increase 50% year on year. This is not because Spaniards are buying more cars but because Spain is increasing manufacturing for reports,” said de la Rosa. In fact, four auto manufacturers closed plants in France, Belgium and Poland in 2012. The manufacturers also opened new branches in Spain over the past two years.
De La Rosa added, “Europe is cheap relative to Japan, and the U.S. and emerging markets. What is truly cheap is the periphery and within the periphery one needs to take a deeper dive.”