Alpha Trust’s agreement with Alpha Bank marks one of the most significant developments in the asset management sector in recent years. After nearly four decades of operating independently, the company has chosen to join a strong banking group while maintaining its philosophy and investment identity.
Alpha Trust’s founder and executive chairman, Faidonas Tamvakakis, explains to Euro2day.gr the reasons behind this strategic decision. At the same time, he analyzes the prospects opening up for the company and the Greek stock market, while sharing his assessments of the sectors that are currently attracting the most investor interest.
After many years of independent operation and significant successes, Alpha Trust took the major step of partnering with Alpha Bank. Why did you choose this particular moment, and why Alpha Bank?
Throughout Alpha Trust’s nearly 40-year history, there have been periods of intense activity in the industry regarding partnerships and mergers. Over the past eighteen months, we’ve held discussions with a number of interested parties, but Alpha Bank’s proposal stood out for one key reason: not only will Alpha Trust’s character remain intact, but it will also be strengthened and developed for mutual benefit. There was also a shared understanding regarding priorities and ethics, as well as good personal chemistry.
What essentially changes with the new Alpha Trust–Alpha Bank structure? What new opportunities are opening up for the company, and how is its business model changing?
Alpha Trust has extensive experience in both partnerships and acquisitions, having absorbed three mutual fund management companies, two portfolio investment firms, and acquired an investment firm in the United Kingdom to date. The goal has always been to empower our staff and improve customer service.
Through this policy, we have built long-term relationships of trust with society and driven the company’s progress. Let’s not forget that the country has experienced extreme volatility over the past few decades, yet these challenges have failed to undermine our business model and credibility; on the contrary, our growth has been impressive.
The Greek stock market is posting one of the strongest performances internationally. To what do you attribute this trend? Is there still an investment “story” that can sustain this momentum?
Due to the national crisis, the Greek stock market missed out on the longest period of stock market growth that followed the global banking crisis. Hence its outperformance over the past seven years. We are now moving in step with international trends, and the market’s future trajectory will depend on whether companies continue to grow at satisfactory rates.
Alpha Trust has long been recognized as an investment manager delivering high returns on equity. In which sectors do you currently see the greatest momentum and the most interesting investment opportunities? Which companies stand out to you?
Due to the prolonged rise in prices and high valuations, interest is focused on sectors with predictable sales and profit margins for at least the next three years. Consequently, we are focusing on infrastructure companies, particularly in the energy and transportation sectors, as well as in defense, while we remain selective in the technology sector (due to high valuations).
Beyond sectors, there are always companies that stand out for their own reasons, and we have been monitoring them for years. It has always been our policy not to mention specific stocks by name.
Now that Euronext has been on the Athens Stock Exchange for the first few months, what is your initial assessment? What do you consider to be the key benefits, as well as the potential risks or limitations over the long term?
First of all, I can’t deny that there was initial skepticism regarding Euronext’s acquisition of the Athens Stock Exchange, due to concerns that it might be sidelined. Fortunately, so far, it seems that exactly the opposite is happening. Daily trading activity is on the rise, and, most importantly, we’re seeing a surge in new listings and capital raising through stocks and bonds.
Over time, it is the companies themselves that will determine success. Will they make good use of the capital and the visibility, and will they live up to the promise they make to shareholders?