Founded in 2003, Varenne Capital Partners manages around $2.6 billion and specializes in developed market equities. The firm combines four performance drivers – long equity, short equity, merger arbitrage, and tail risk hedging – in what co-founder Giuseppe Perrone calls a «long plus» approach. «Our investors get exposure to equity markets with hedging that activates when it’s needed. It’s not long-short, but long plus,» he told finews.com in an interview this week.

The company has long maintained relationships in Switzerland, especially in the French-speaking part. Perrone has been visiting the country quarterly for over 14 years. With the broadened UCITS range since 2023, Varenne now wants to expand its footprint.

Growth Targets, New Co-Country-Head

«Out of our AUM, Switzerland is currently a low single-digit percentage. We think that, given the size and sophistication of the market, this should move to double digits. That is really the target,» said Perrone.

To cover German-speaking Switzerland, Varenne has named Jonathan Monat as co-country head. He joined the firm in 2021 after roles at Blue Bridge Wealth Management in Lausanne and the Canadian Medical Protective Association. The CFA and CAIA charterholder is keen to engage with Swiss investors. «I’m very excited about coming more frequently to German-speaking Switzerland. We know there are many sophisticated investors here, and I look forward to connecting with them,» he said.

«Sunshine or Rain...»

Monat is accompanied by David Wierzba, director of Business Development and co-country head, who continues to cover French-speaking Switzerland.

Perrone added that while Varenne is stopping short of opening a Swiss office for now, more resources will be dedicated locally. «We want to intensify our presence. Sunshine or rain, we will always come every quarter to discuss our results with investors, just like a listed company would.»

The Moment for Tail-Risk Hedging?

Asked about the target client base, Perrone was clear: «Private capital is really what we are targeting now. Historically, we have had success in Switzerland with family offices and independent asset managers. We want to replicate this on the German-speaking side.»

On market conditions, he cautioned against complacency: «European and North American markets have priced in a lot of good news. There is a real risk that at some point something could go wrong. If the slowdown turns out to be more pronounced than feared, markets could have a severe downturn. That is why our tail risk hedging is there.»

Partnership Culture

Monat emphasized the firm’s alignment with clients: «Most of our liquid net worth is invested alongside our investors. And we have a partnership culture – more than 20 of our 50 staff are partners in the firm.»

For Perrone, the goal is not asset gathering at any cost: «We have always invested ahead of inflows to make sure we can manage two to three times our current assets. We are not an asset-gathering organization – our objective is to serve our clients first.»