Tue, Oct 21, 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

Banner

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: What's next for trend followers?[more]

    Bailey McCann, Opalesque New York: New research out from Ibbotson touches on a key debate happening among investors and fund managers, specifically whether long term trend followers can survive in the new

  2. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  3. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  4. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  5. Sparx optimistic about outlook for Japan[more]

    Benedicte Gravrand, Opalesque Geneva: According to SPARX, there are causes to be optimistic about the outlook for the Japanese market and the country's economy in general. Sparx Asset Management is a Tokyo-based asset manager, part of