Thu, Jul 31, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Verno Capital believes Russian reforms not yet priced into stocks

Thursday, January 17, 2013

By Beverly Chandler, Opalesque London:

Moscow-based long/short hedge fund Verno Capital returned 16.7% for 2012, despite a difficult Russian market. The firm has $200m under management. Senior Partner Roland Nash remains bullish on the Russian market as he believes that important reforms happened in 2012 but haven’t yet been priced into stocks; Russian debt has re-rated but equities haven't reflected that yet; dividends are rising fast on the back of a government-imposed minimum of 25% payouts and Russian stocks now trade at a bigger discount to their emerging manager peers than at any time in the last 10 years.

Russian equities ended 2012 deeply discounted, Nash says, but he believes that Russian fundamentals arguably improved in 2012 as much as in any 12 month period since the burst of reforms that followed Vladimir Putin’s first election in 2000. "Political risk has retreated and a more balanced macroeconomic framework adopted. Partly as a result, the economy appears to have moved away from its tendency towards boom/bust and on to what may prove to be its first period of sustainable medium-term growth in the post­Soviet period. Perhaps most positively, there has unexpected progress across a number of reforms" Nash says.

He believes there are several reasons for optimism for Russian equities over 2013. "First, the initiatives begun in 2012 should start to make an impact in 2013. Financial sector lib......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Kyria Capital Management bets on women hedge fund managers[more]

    Bailey McCann, Opalesque New York: As hedge fund assets top $3 trillion, and long/short strategies get more crowded than ever, with every manager hunting for even the tiniest bit of alpha, a new firm has emerged that claims its own edge – women. A recent Rothstein Kass study showed women-owned a

  2. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  3. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  4. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  5. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by