Wed, Aug 27, 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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Hedge fund assets decline in July - eVestment[more]

    Bailey McCann, Opalesque New York: Total assets in hedge funds declined in July and dropped 0.49%, marking the industry's second monthly asset decline in 2014, according to the latest asset flows data from eVestment. Despite the asset decline, total industry AUM remained above the $3 trillion

  3. AIMA makes 'the case for hedge funds'[more]

    Bailey McCann, Opalesque New York: The Alternative Investment Management Association (AIMA), the global hedge fund industry body,

  4. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  5. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius