Financials & FinTech, EM & Southern Europe, Galliano's Latin Notes

Victor Galliano

Victor Galliano is an experienced equity banks analyst, having covered Latin America banks and non-bank financials for over 12 years, as well as more recently covering the Italian banks. He has worked in sell side equity research for 30 years in a career spanning Barclays, HSBC, BBVA LatInvest, Barings and NatWest.
The focus of the Galliano's Latin Notes Ltd product is to seek out mis-pricings in the market, on a bottom up basis and focused on long and short calls, in the LatAm and Southern European financials space. In addition, the product explores thematic research opportunities in the banking sector, including FinTech.
The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. The aim is to develop more of a contrarian approach to investment research, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of Gordon's Growth Model (GGM) and Sum of the Parts (SOTP) valuation.

Financials & FinTech, EM & Southern Europe

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Softbank Group - Requiem for WeWork’s Premium Valuation

Softbank Group (9984 JP) – Defying Gravity into 4Q 2022

Softbank Group Q2 22 Results Reaction: Alibaba Gains Offset VF Losses but Buybacks Over

Softbank Group (9984 JP) –Vision and LatAm Funds Take Another USD10bn Valuation Hit in 2Q 22

Gravity Works As WeWork Doesn't; Now Plan B

Korean Defense Plays Outperforming the Market in Light of Russia-Ukraine Conflict

Bifurcated Chinese Express Market Developing

Galliano's Latin Notes

The focus of the Galliano's Latin Notes Ltd product is to seek out mis-pricings in the market, on a bottom up basis and focused on long and short calls, in the LatAm and Southern European financials space. In addition, the product explores thematic research opportunities in the banking sector, including FinTech. The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. The aim is to develop more of a contrarian approach to investment research, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of Gordon's Growth Model (GGM) and Sum of the Parts (SOTP) valuation.

Equity Bottom-Up

<ul>
<li>Masayoshi’s debt with Softbank group is big, and due to the poor performance of SoftBank Vision Fund 2, Masa’s equity interest as a co-investor is now zero</li>
<li>Internal hedge fund Northstar, in which Masa has a 33.3% stake, is in liquidation leaving Masa’s share of his Northstar debt to SoftBank at USD1.2bn</li>
<li>SoftBank’s collateral on Masa debt includes the Vision Fund 2 equity, as well as SoftBank shares and other personal assets; we expect SoftBank’s NAV discount of c 25% to widen</li>
</ul>


Masayoshi’s debt with Softbank group is big, and due to the poor performance of SoftBank Vision Fund 2, Masa’s equity interest as a co-investor is now zero
Internal hedge fund Northstar, in which Masa has a 33.3% stake, is in liquidation leaving Masa’s share of his Northstar debt to SoftBank at USD1.2bn
SoftBank’s collateral on Masa debt includes the Vision Fund 2 equity, as well as SoftBank shares and other personal assets; we expect SoftBank’s NAV discount of c 25% to widen


Softbank Group (9984 JP) –The Masa Hurdles