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Dimitri Kryukov By Beverly Chandler, Opalesque London:

Russian hedge fund Verno Capital was launched in 2010 by Moscow-based founder and CIO Dimitri Kryukov, who previously co-founded Kazimir Partners in 2002. During that incarnation, Kryukov as portfolio manager of the Kazimir Russian Fund saw it return over 450% net of fees (over 30% annualised) against the RTS index returns of 92% since its inception in August 2002 until the end of 2008.

Verno Capital has about $200m under management and offers a hedge fund running the same strategy as the Kazimir fund and a long only fund invested in Russia and the Former Soviet Union (FSU).

It had a difficult 2011 in line with the Russian market but this year the flagship hedge fund, the Verno Russia Fund is up 12.94% through to the end of May, putting it 23% ahead of the benchmark RTS Index.

The Verno Russia Fund is a long/short fund whose portfolio is structured as a multiple book portfolio of four books of positions. The hedge fund is 15-20% invested in the Verno’s long only fund, representing 20-30% of that fund. Kryukov explains that this aligns the research books of the two funds. Focus here is based on the theme of domestic consumption and oil and gas exposure at 35%; domestic banking at 20%, direct consumer at 10% and construction and transportation at 10%.

Verno’s trading book is used to express short term views or to amplify some of the long only positions. Kryukov gives an example of a special situation position that has......................

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