Founded in 2020, Genoa Capital has established itself as an asset manager operating with three main strategies: multi-market, long bias, and systematic. In equities, it manages approximately R$ 2 billion and employs a strategy that combines investments in both local and international assets, but with a simple philosophy.
"Don't complicate what doesn't need to be. Simplify the decision as much as possible," explains José Luiz Torres, partner at Genoa Capital, on Café com Investidor , a NeoFeed program that interviews leading investors in Brazil.
“My challenge is to build a portfolio tailored to the opportunities, but always keeping an eye on the risk. I don’t like to lose,” he adds.
The process is based on detailed analysis of companies and conversations with management, always focusing on risk and volatility. The selection of companies follows criteria such as stable businesses, high returns, consistent growth, and reliable management.
“The difficulty lies in finding someone who combines all of that with a reasonable valuation. What we're looking for are asymmetries,” says Torres.
In Brazil, preference is given to companies protected against inflation and high interest rates, generally in regulated sectors, with the ability to pass costs on to consumers and low leverage. "These are companies that do not suffer from high interest rates and have mechanisms in their revenue to pass on inflation, whether through regulation or market dominance," says Torres.
Abroad, Genoa seeks innovative companies, especially in technology. "Our big bet is on technology. Artificial intelligence is here to stay. I like Microsoft, Amazon, and Nvidia. They are cases with reasonable valuations and growth potential," says the partner at Genoa Capital.
Among the Brazilian companies, Sabesp, Copasa, and Copel stand out, all linked to sanitation and energy, sectors with strong cash generation capacity and regulatory protection.
"Sabesp is a good case for shareholders, the government, and consumers. With privatization, investments triple and universal service is delivered," he states.
Abroad, in addition to the tech giants, Genoa has significant positions in energy, driven by the growing demand for data centers and electric vehicles. "We hold positions in energy and equipment related to the sector. It's a strategy that began at the end of 2023 and remains strong," says Torres.
Another key point in the strategy is liquidity. “Companies with low liquidity practically don’t make it into our portfolio. I want the freedom to change my mind. If I’m wrong, I don’t want to be stuck,” Torres emphasizes.
In this conversation, which you can watch in the video above, Torres details the thesis, talks about risk control, which is rigorous, with daily stress tests and the use of derivatives for protection. "I don't look so much at the size of the position, but at the size of the risk."