18. March 2011

Spectrum CIS Value Fund achieves over 52% net return in 2010

Spectrum Partners, the emerging markets equity manager specializing in Russia and CIS, delivered a strong performance in 2010

Moscow, 18th March 2011 The Spectrum CIS Value Fund, a long only strategy investing in a diversified portfolio of small- and mid-cap Russian and CIS equities achieved a net return of 52.4% in 2010 compared to the MSCI Russia Index return of 17.2%, an outperformance of 35% and making the fund one of the top performers among peers. The Spectrum Russian Phoenix Fund, a long/short equity fund investing in Russian and CIS equities, generated a net return of 24.6% in 2010, outperforming the broader market as measured by the MSCI Index, by over 7%. Russia has become a consensus overweight as recommended by bulge bracket investment banks: Goldman Sachs, JP Morgan, and Citigroup have upgraded Russia to a 'conviction buy' in 2011. Additionally, investment inflows have been observed based on a rotational trade out of Turkish equities and into Russian stocks. The above factors together with a solid global investment climate have lately created strong upward momentum in Russian equity prices - the MSCI Russia Index achieved nearly all of its 2010 gains of 17.2% in the last two months of the year when it rallied 16.6%. Spectrum Partners sees Russia and its surrounding areas to be an attractive investment prospect for 2011. Michael Kart, Managing Partner and Manager of Spectrum Funds said: "Emerging markets will continue to be the engine spurring on world economic growth over the next years and Russia as the world's main storehouse of raw materials will provide the necessary fuel". Within the BRIC context, we notice Russia has far more natural resources, a more educated population, a higher proportion of the middle-class, a strong macroeconomic framework, a better track record and is the cheapest major market among GEM (Global Emerging Markets)" For more information please contact us at: ir@spectrumfunds.com

[« Back]