Mon, May 25, 2015
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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. Opalesque Exclusive: Ovation Partners targets opportunities where few "natural lenders" participate[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Changes in financial regulations post-2008 (Dodd-Frank and Basel III) are forcing banks to significantly alter their core lending businesses. And as mid-sized

 

banner