Financial News
Jason Corcoran in Moscow
24 March 2009
Swiss family office G2 Group has taken large equity stakes in two rival Russian investment firms which were forced to restructure following the equity market’s collapse and client withdrawals.
G2, which manages $1bn (€735m) in alternative assets, has become a shareholder and partner in Da Vinci Capital and Diamond Age Capital Advisors, two firms whose offices face one another across Moscow’s Moskva river.
Russian hedge funds are attempting to restructure and restart with new investors as the economy stabilises. Russia’s Micex index hit a 18-week high on Friday, rising above 800 points as energy and metal stocks were boosted by strong global commodity prices.
Oleg Jelezko, managing partner and chief executive of Da Vinci Capital, said: “G2 offers investment as well as partnership. We have put our hedge fund on their platform and they have hired some great people for us. They have also extended their investment from the holding company to our private equity operation.”
Da Vinci, which had $250m of assets under management in mid-2008, was set up in 2007 by former Renaissance Capital executives as a joint venture with international fund group BSG.
G2, which replaces BSG as a partner, is investing $10m (€7.4m) into Da Vinci’s hedge fund and $10m into its private equity fund, which has a fundraising target of $300m.
The Swiss group, which is headed by financier Gualtiero Giori, also recently became a partner and equity investor in hedge fund business Diamond Age Capital Advisors.
Slava Rabinovich, managing partner of Diamond Age, told investors that current valuations represent a “once in a lifetime” opportunity. Rabinovich, former deputy portfolio manager to Bill Browder at Hermitage Capital, set up the firm in 2005.
Showing posts with label Russian hedge funds. Show all posts
Showing posts with label Russian hedge funds. Show all posts
Tuesday, 24 March 2009
Sunday, 22 February 2009
Troika returns to Russia after Cohen exit
Financial News
Jason Corcoran in Moscow
16 February 2009
Russian investment bank Troika Dialog has moved the management of its hedge fund business from London to Moscow following the departure of its chief executive Stephen Cohen last year.
A Troika spokeswoman said the fund was now being run by an investment committee and its two portfolio managers are Oleg Larichev and Vladimir Potapov.
Larichev is chief investment officer at the bank’s fund management subsidiary Troika Dialog Asset Management and Potapov, who joined the group in 2003 as an intern, has been a fund manager for several years.
Cohen joined Troika as head of its hedge fund business in 2006 after being made redundant as head of European business at Putnam Investments. He quit Troika in August last year, re-emerging at UK fund manager Montanaro in October as a director with responsibility for business development.
Of his departure from Troika, Cohen said: “They had wanted me to relocate to Moscow, but I could not for various personal reasons. I was trying to build an international product so Russians could invest outside of Russia but there was little demand. The product was no longer valid so it was logical to move the business to Moscow.”
Cohen said the Cayman Islands-registered Troika Russian fund had once totalled $200m but had been “whacked for performance” over the past six months.
Troika said Cohen’s departure had pre-dated the financial crisis in Russia but declined to comment on the circumstances. A number of Russian hedge funds have closed recently or “gated” investors’ ability to withdraw funds during a 75% decline in the stock market and a deteriorating investment climate for minority shareholders.
Jason Corcoran in Moscow
16 February 2009
Russian investment bank Troika Dialog has moved the management of its hedge fund business from London to Moscow following the departure of its chief executive Stephen Cohen last year.
A Troika spokeswoman said the fund was now being run by an investment committee and its two portfolio managers are Oleg Larichev and Vladimir Potapov.
Larichev is chief investment officer at the bank’s fund management subsidiary Troika Dialog Asset Management and Potapov, who joined the group in 2003 as an intern, has been a fund manager for several years.
Cohen joined Troika as head of its hedge fund business in 2006 after being made redundant as head of European business at Putnam Investments. He quit Troika in August last year, re-emerging at UK fund manager Montanaro in October as a director with responsibility for business development.
Of his departure from Troika, Cohen said: “They had wanted me to relocate to Moscow, but I could not for various personal reasons. I was trying to build an international product so Russians could invest outside of Russia but there was little demand. The product was no longer valid so it was logical to move the business to Moscow.”
Cohen said the Cayman Islands-registered Troika Russian fund had once totalled $200m but had been “whacked for performance” over the past six months.
Troika said Cohen’s departure had pre-dated the financial crisis in Russia but declined to comment on the circumstances. A number of Russian hedge funds have closed recently or “gated” investors’ ability to withdraw funds during a 75% decline in the stock market and a deteriorating investment climate for minority shareholders.
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.
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.
Monday, 10 November 2008
Russian hedge funds face threat of closure
Financial News
Jason Corcoran in Moscow
10 November 2008
The closure of a Russian hedge fund run by Florin Investment Management has led to fears many more could go under as investors flee emerging markets.
It is estimated about 70 hedge funds are operating in Russia and the Commonwealth of Independent States and analysts predict over half will be wiped out by next year.
The closure of Florin FSU Credit Opportunities Fund, which was invested in real estate and equity collateralised debt, led to 10 lay-offs at the firm in Moscow and London.
Florin’s principals Neil Smith and Aidan Freyne are hoping to buy the fund’s architecture from its shareholders at Trust Capital and relaunch the fund as a distressed assets vehicle.
Smith was previously head of alternative investments at the UK’s Morley Fund Management while Freyne spent 19 years with Salomon Brothers and subsequently Citigroup.
Smith said: “Credit has been a difficult space to be in but it’s going to be great for distressed and acquiring debt at super-distressed levels.”
Fears are growing that other Russia funds with their mainly long-only bias may be wiped out like they were following the 1998 financial crisis.
Florin was set up earlier this year with $100m (€78m) in seed money from Trust Bank and other external sources.
James Fenkner, founder of Moscow hedge fund Red Star Invest, said most Russia funds were equity focused with only minimal shorting so most had been hit by the slide in stock markets.
He said: “I haven’t seen anything like this since 1998. It’s a case of survival. It’s going to be a blow-up of the good, the bad and the ugly.”
Fenkner said Red Star’s Austrian backer Erste Bank was standing behind the fund, which had bucked the trend and returned over 100% during October.
http://www.efinancialnews.com/homepage/content/3352423321
Jason Corcoran in Moscow
10 November 2008
The closure of a Russian hedge fund run by Florin Investment Management has led to fears many more could go under as investors flee emerging markets.
It is estimated about 70 hedge funds are operating in Russia and the Commonwealth of Independent States and analysts predict over half will be wiped out by next year.
The closure of Florin FSU Credit Opportunities Fund, which was invested in real estate and equity collateralised debt, led to 10 lay-offs at the firm in Moscow and London.
Florin’s principals Neil Smith and Aidan Freyne are hoping to buy the fund’s architecture from its shareholders at Trust Capital and relaunch the fund as a distressed assets vehicle.
Smith was previously head of alternative investments at the UK’s Morley Fund Management while Freyne spent 19 years with Salomon Brothers and subsequently Citigroup.
Smith said: “Credit has been a difficult space to be in but it’s going to be great for distressed and acquiring debt at super-distressed levels.”
Fears are growing that other Russia funds with their mainly long-only bias may be wiped out like they were following the 1998 financial crisis.
Florin was set up earlier this year with $100m (€78m) in seed money from Trust Bank and other external sources.
James Fenkner, founder of Moscow hedge fund Red Star Invest, said most Russia funds were equity focused with only minimal shorting so most had been hit by the slide in stock markets.
He said: “I haven’t seen anything like this since 1998. It’s a case of survival. It’s going to be a blow-up of the good, the bad and the ugly.”
Fenkner said Red Star’s Austrian backer Erste Bank was standing behind the fund, which had bucked the trend and returned over 100% during October.
http://www.efinancialnews.com/homepage/content/3352423321
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