Advance Emerging Capital Is in Russia for the Long Haul
Russian equities may be out of favor, but cheap valuations make them attractive on a long-term basis, says a U.K. fund manager.
Institutional Investor Magazine
November 19, 2013
By Robert Stowe England
Emerging-markets equities remain largely out of favor with investors, which is not surprising, given the 4.27 percent decline in the MSCI emerging-markets index this year, as of November 7. And within the EM world, few markets get as much love these days as Russia. For one value investor, however, that’s a buying signal.
“Russia is one of the, if not the most, hated markets within the emerging-markets space,” says Slim Feriani, chief executive officer and chief investment officer at Advance Emerging Capital, a $750 million London-based fund manager. “From a contrarian point of view, it is a good thing. It’s a good entry point because everyone else avoids it.” The fund has 12 percent of its assets in Russian equities, compared with the country’s roughly 6 percent weighting in the MSCI emerging-markets index, making Russia the fund’s highest-conviction country.
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