Tuesday, 10 February 2009

Red Star Founder Quits Russia After 14 Year

Dow Jones International News

By Jason Corcoran in Moscow

9 February 2009

One of the best-known Russian strategists is quitting the country after the backer of his Moscow-based hedge fund, Red Star Asset Management, pulled its mandate amid plummeting markets.

James Fenkner, founder and managing director of Red Star, is moving to Santa Barbara, California after working in Russia for 14 years. Fenkner took the decision after Erste Bank, an Austrian retail bank with a network across central and eastern Europe, withdrew its support for Red Star.

Erste did not respond to calls seeking comment. Fenkner said his relocation was mainly for family reasons. He said: "We believe that great fortunes will again be made in Russian shares, but one doesn't need necessarily to live 24/7 in Moscow to participate...Like most investors, I want to fly in for a few weeks a year with a better global perspective."

Fenkner set up Red Star in 2005 after seven years at Russian investment bank Troika Dialog as head of research and initially as chief strategist.

His departure from Russia follows the closure of several hedge funds operating in the region and a deteriorating investment climate for minority shareholders.

Many Russian funds, including Red Star, have switched in recent months to trading American and global depository receipts in London and New York because of domestic illiquidity and frequent market closures in Moscow.

Erste had represented 40% of the fund, which had stood at $150 million in assets under management last year. Redemptions by clients and a collapse in equity valuations have sliced the fund size to $12 million.

1 comment:

Scott Licamele said...

November 10, 2009


Scott Licamele Joins Red Star Asset Management as Fund Broadens Strategy Mandate

Greenwich, CT, November 10, 2009 – Scott Licamele, former Vice President of Equity Research Sales at Renaissance Capital, joined hedge fund Red Star Asset Management L.P., where his responsibilities include emerging markets equity research and business development. He is based in Greenwich, Connecticut.

Prior to working at Renaissance Capital, Licamele headed up North American equity sales and trading for Russia’s Alfa Bank in New York. He also marketed Alfa Capital Partners private equity fund to North American clients. Licamele is American by birth and fluent in Russian. He received an M.A. in International Affairs from the School of International and Public Affairs at Columbia University and a B.A. in European History from Bard College.

Red Star Asset Management LP’s Managing Director, James Fenkner, commented on the addition of Licamele: “Scott brings new energy and depth of experience to the management team. His experience in emerging equity markets, particularly in the commodity-focused former Soviet Union, substantially enhances the firm’s research and stock selection capabilities.”

Licamele, who has lived in Russia and Ukraine for over five years, has extensive experience operating in emerging markets. He highlighted Red Star’s investment philosophy: “Our strategy is based on three principles. First, global demand for commodities, particularly China’s, will be supportive of commodities prices during the next decade. Second, America’s unprecedented expansionary fiscal and monetary policies will significantly weaken the dollar over the long-term, bolstering the price of dollar-based commodities. Lastly, numerous commodity sector stocks offer tremendous upside – specifically those large and growing companies which are under-represented in market indexes.”

Red Star Asset Management, L.P. is an investment manager which seeks long-term capital appreciation by investing in deep value, commodity-related securities worldwide. They focus primarily on overlooked and under-researched companies. The Firm was founded in 2005 and is registered with the United States SEC. www.redstarfunds.com