By Marcus Wlliams
The East Capital Russian Fund run by the Swedish investment firm has returned 1,524% in dollar terms during the past decade which is 561% better than the second best fund and 826% better than the benchmark index RTS over the same period.
The fund has – since its inception in 1998 – invested in a highly diversified portfolio and mirrors the drivers of the Russian economy.
East Capital said it is strongly geared towards many companies and sectors that stand to gain from domestic growth, seeking value in sectors such as consumer goods, construction, retail and banking sectors. The fund has approx. $1.5bn in assets under management.
Peter Elam Håkansson, Chairman and head of investment team of East Capital, said the firm's outstanding returns over the decade were down to its underweight exposure to commodities in favour of companies exposed to domestic demand.
He said: "We think that Russia will have a very strong year in 2010 and we have once again chosen to focus on themes related to domestic demand such as power utilities, consumer goods and banking.”
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