Navigating Global Markets: Sandro Salsano’s Strategic Vision from Lake Como to Panama

In the realm of international business and high-impact philanthropy, the trajectory of Sandro Salsano stands out as a beacon of strategic foresight, unwavering commitment, and philanthropic leadership. Originating from the picturesque settings of Lake Como, Italy, Sandro’s journey encapsulates the essence of transformational leadership and the profound impact of informed, global-minded investment strategies. This narrative is a deep dive into the life of a self-made entrepreneur whose roots in a modest, education-centric family in Italy propelled him onto the global stage, culminating in his influential role in Panama’s burgeoning investment landscape.

Elevated by a scholarship-driven educational journey through Italy’s prestigious Bocconi University, Sandro’s early life was marked by a profound appreciation for the doors that education can open. Transitioning from dreams of becoming a professional basketball player to embracing the rigors of academia and international business, his path is a testament to the power of adaptability and strategic planning. Sandro’s professional odyssey has spanned continents, from valuable internships in Europe to academic pursuits in the United States, each step enriching his understanding of the global business ecosystem.

However, it was Sandro’s strategic relocation to Panama, prompted by an intriguing invitation from a prominent family, that heralded a new era of opportunity and influence. This move was not just a geographical shift but a strategic positioning within one of Latin America’s most dynamic economies, reflecting Sandro’s ability to identify and leverage emerging market opportunities.

Sandro is a Young Global Leader of the World Economic Forum whose business acumen,  strategic investment philosophy, and his philanthropic initiatives have made significant contributions to education and social progress and philanthropy.

Give us a brief overview of your background and how you came to live in Panama?

I grew up dreaming of a future far beyond my humble beginnings in Lake Como, Italy. My educational journey began at Milan’s Bocconi University, thanks to a scholarship that marked the start of an incredible path. Coming from a modest background, with my mother working as a teacher, scholarships were crucial in my academic pursuits. Today, my wife and I are committed to giving back through philanthropy, focusing on educational scholarships

As a child, my dream was to play professional basketball, ideally in the NBA. Despite some success at the junior level, a mentor’s advice to prioritize education over a fleeting athletic career redirected my focus to higher education at Bocconi University. This institution, known for its elite status and notable alumni like Mario Draghi, set the stage for my academic and professional journey.

After completing my studies in Milan, I pursued further education in the United States, choosing an MBA exchange program in San Diego, California. This period not only enriched my academic knowledge but also allowed me to experience the Californian lifestyle, a dream of mine. Later, I was honored to join the board of trustees and the Investment Committee for the endowment of the university that had played a significant role in my education.

Looking back, I am deeply thankful for the support and guidance from family, friends, and mentors. Surrounding myself with loyal and intelligent individuals has been instrumental in my personal and professional growth.

My journey to Panama began unexpectedly 15 years ago while I was engaged in real estate investments in Miami. An invitation from a prominent Panamanian family to explore investment opportunities in Panama introduced me to this vibrant country. Initially, I had no plans to establish a base here. However, after meeting my future wife—introduced to me by her father, a significant developer and business magnate in the region—I found both a personal and professional connection. My father-in-law built a conglomerate in the region encompassing mining, real estate development, the cement industry, construction materials, logistics and banking innovation which inspired me greatly. I had instant chemistry with his daughter who also speaks perfect Italian, long story short we got married and recently celebrated our wedding anniversary.

Can you provide an in-depth overview of your investment strategy, including the specific criteria you use to identify opportunities?

Our investment strategy is multifaceted, combining elements of value investing, contrarianism, and a focus on long-term growth prospects and covers both direct investments as well as LP positions in fund managers.  When evaluating potential investments, we look for opportunities that offer a significant margin of safety, meaning that the current price of the asset is substantially below its intrinsic value. This approach allows us to minimize downside risk while positioning ourselves for substantial upside potential.

Can you elaborate on the specific regions you are currently focusing on for investment, and the reasons behind your focus on these areas?

Our investment focus is primarily on two regions: Latin America and emerging markets more broadly, and liquid markets, with a particular emphasis on the United States and Asia.

In Latin America, we see significant potential for growth and value creation across various sectors and industries. This region has historically been overlooked by many investors due to concerns about political instability, economic volatility, and governance issues. However, we believe that these challenges are gradually being addressed, and there are compelling opportunities emerging as a result.

Specifically, countries like Brazil, Mexico, and Argentina offer attractive investment prospects due to their large and growing populations, abundant natural resources, and expanding middle class. Additionally, recent developments such as Brazil’s accession to organizations like OPEC indicate a shifting economic landscape that presents opportunities for savvy investors.

In addition to Latin America, we are also actively exploring opportunities in liquid markets, particularly in the United States and Asia. These markets offer greater liquidity and transparency compared to many emerging markets, making them attractive destinations for investment. In the US, we see opportunities in sectors such as technology, healthcare, and consumer discretionary, where innovative companies are driving growth and creating value.

Similarly, in Asia, particularly in countries like China and India, we see significant potential for growth and value creation. These markets are home to some of the world’s fastest-growing economies and offer exposure to dynamic industries such as e-commerce, fintech, and renewable energy.

Overall, our investment strategy is guided by a combination of bottom-up fundamental analysis and top-down macroeconomic research, allowing us to identify attractive opportunities in both emerging and developed markets.

How do you assess investment opportunities in Latin American markets, and what specific factors drive your interest in this region?

When evaluating investment opportunities in Latin America, we take a comprehensive approach that involves assessing both macroeconomic trends and company-specific fundamentals.

From a macroeconomic perspective, we look for countries with stable political environments, sound monetary policies, and favorable demographic trends. Additionally, we consider factors such as GDP growth rates, inflation levels, and currency stability, which can impact investment returns and risk profiles.

Specifically, there are several factors driving our interest in Latin America as an investment destination. First and foremost is the region’s large and growing population, which presents significant opportunities for companies operating in consumer-facing industries such as retail, healthcare, and financial services. Additionally, Latin America is rich in natural resources, including oil, gas, and minerals, which can provide a source of competitive advantage for companies operating in the energy and mining sectors.

Furthermore, recent developments such as Brazil’s accession to organizations like OPEC indicate a shifting economic landscape that presents opportunities for investors. As these countries continue to modernize their economies and implement structural reforms, we believe there are compelling opportunities emerging for investors with a long-term horizon and a willingness to navigate the region’s unique challenges.

How do you assess investment opportunities in liquid markets compared to private equity, and what factors influence your allocation between these two asset classes?

When evaluating investment opportunities in liquid markets versus private equity, we consider a variety of factors, including risk-return profiles, liquidity, and investment horizon.  We also try to identify the best fund managers who manage capital with low beta.  

In liquid markets, such as public equities and fixed income securities, assets can be bought and sold readily on public exchanges, providing investors with greater liquidity and transparency. This liquidity allows for more flexible portfolio management and the ability to quickly adjust positions in response to changing market conditions. Additionally, public markets offer a wide range of investment opportunities across various sectors and geographies, allowing investors to build diversified portfolios with relatively low transaction costs.

In contrast, private equity investments typically involve taking stakes in privately held companies or assets that are not traded on public exchanges. While private equity investments offer the potential for higher returns compared to public markets, they also tend to be less liquid and have longer investment horizons. Private equity investments can also involve higher fees and expenses compared to public market investments.

When allocating between liquid markets and private equity, we consider factors such as our investment objectives, risk tolerance, and liquidity needs. For example, we may allocate a larger portion of our portfolio to liquid markets if we have short-term liquidity needs or a lower risk tolerance. Conversely, we may allocate more capital to private equity if we have a longer investment horizon and are seeking higher returns.