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Alternative Market Briefing

Russian hedge fund launched focusing on small-cap and pre-IPO investment opportunities, Analysis: Cash-out time in Russia? Will Putin change constitution for 3rd term, or `transition into the unknown`?

Thursday, October 12, 2006

Opalesque Exclusive: Russian hedge fund launched focusing on small-cap and pre-IPO investment opportunities UFG Russia Alternative Fund, the hybrid investment vehicle to capitalize on less liquid investment opportunities in the Russian equity market and invest in non-listed companies that will come to the market within 12-24 months.

Investment Strategy The Fund is launched as a hybrid investment vehicle to capitalise on less liquid investment opportunities in the Russian equity market, but will also invest in non-listed companies that will come to the market within 12-24 months.

The Fund will be managed by Florian Fenner and Svetlana LeGall, who will be helped in their efforts by Timur Salikov and ten investment professionals of UFG Private Equity. The Fund utilises the unique access to Russian business and government circles of UFG Asset Management. The fund management pursues a very opportunistic investment strategy that focuses more on actual access to deals than on a pre-determined and static strategy.

Investment Opportunity The decision to invest in Russia is not binary anymore, but investment returns will depend more on picking the right stocks and sectors than getting exposure to beta. Following the re-rating of the Russian market, and the oil sector in particular, we believe that future investment returns will come from companies that are currently either less liquid or in a pre-IPO stage.

While there is no shortage of mon......................

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