e-fundresearch: Which benchmark do you adhere to?
Fruzzetti: The Morgan Stanley European Small Cap Index
e-fundresearch: Are you also responsible for other funds at the moment?
Fruzzetti: I also am responsible for a portion of MFS International New Discovery Fund (not available outside the U.S.)
e-fundresearch: What is the total volume that you manage in all your funds?
Fruzzetti: MFS European Smaller companies Fund is approximately $20MM US dollars. I manage approximately $1.8B USD for a portion of a $3B USD international small cap fund available to U.S.-based investors as well.
e-fundresearch: Regarding the performance: which performance did you achieve since the beginning of the year and in the years 2006-2010? Absolutely and relatively to the relevant benchmark?
Fruzzetti: Since the beginning of 2006, this fund has performed +36.8% until the end of 2010. The benchmark was +23.3%.
Since January 1, 2011, the fund is up +1.1%, while the benchmark is down 0.05%.
e-fundresearch: How content are you with your own performance in the last years and this year?
Fruzzetti: I´m content, but there is still a lot of room for improvement. My goal is to improve every year as an investor.
e-fundresearch: How are you able to deliver added value for your investors with your performance?
Fruzzetti: We have a strong analyst team at MFS – this helps a lot. Beyond that, I think I add value in thinking a little longer term than some of my competitors, so I feel like I´m doing less chasing, but really more long term planning.
e-fundresearch: How long have you been a fund manager already?
Fruzzetti: About 10 years.
e-fundresearch: What were your biggest successes and your biggest disappointments in your career as fund manager?
Fruzzetti: I´ve had a lot of both! Too many to name. I´ve owned a little German company called Amadeus Fire that I bought at 4 euros many years ago, and today it´s at 32. On the downside, early in my career, I owned a company called Jomed which went to zero on accounting issues. To me I´ve learned a lot from both the successes and the mistakes.
e-fundresearch: What kind of capital market situation do we have at the moment? How do you act in this environment?
Fruzzetti: We have a very uncertain market environment. There have been a lot of events which are truly hard or impossible to predict, such as what happened in Japan or in the Middle East. Additionally, there are always uncertainties in the economic environment. The best way to prepare, in my opinion, is to have a long term view and own companies that I think are long term winners.
e-fundresearch: What are the special challenges in this environment?
Fruzzetti: The challenges are that there are always things happening which we haven´t seen before, such as China and the BRIC´s growth, and trying to understand the impact on Europe for example. We can study history of course, but in every new era, there are differences – it´s never the same. At the same time, the uncertainty creates opportunities.
e-fundresearch: What objectives do you have till the end of the year and in the mid term for the upcoming 3 to 5 years?
Fruzzetti: I aim to outperform my benchmark. I also hope to continue to improve as a portfolio manager.
e-fundresearch: Do you model yourself on someone? Any ideals?
Fruzzetti: There are many people I admire, including my parents and my family, particularly for their hard work. I also admire people I work with and of course I try to read about the all-time great investors as well.
e-fundresearch: What motivates you in your job?
Fruzzetti: My shareholders. I want to add value for them. I truly love my job, so motivation has never been a problem.
e-fundresearch: What else do you want to achieve or do you have any further aims as a fund manager?
Fruzzetti: I would like to continue to learning every year. If I can do this, I will continue to improve and add value for my shareholders.
e-fundresearch: What other profession would you have taken interest in, apart from becoming a fund manager?
Fruzzetti: I´ve always enjoyed writing, particularly about sports, but all types of writing really. I would also have enjoyed teaching.
e-fundresearch: Thank you for the interview!