RUSSIA - Prosperity Capital Management may reopen its Prosperity Cub Fund to investors at a later date.
Prosperity, which boasts the fifth anniversary of the fund, claims it is the world’s best performing long-only equity offshore fund over five years, based on rankings from rating agency Standard & Poor’s.
Since its inception in May 1998, the fund has generated a net return of 414.0%, outperforming the RTS Index (Russian Trading System) which yielded 55.2% over the same period.
The US$61m equity fund, which is domiciled in the Caymans, invests in small and medium caps, mainly in the oil and gas, electricity and telecom sectors. It is managed by Mattias Westman and Alexander Branis and utilises a bottom-up selection process.
Prosperity puts the strong performance down to the stakes acquired by the fund manager in small caps during the aftermath of Russia’s financial crisis when confidence in the Russian stock market hit rock bottom. As the economy recovers and M&A activity has increased, Prosperity has been able to capitalise on its positions and so significantly outperform the market.
Mattias Westman, chief investment officer and managing director of Prosperity, said: “The positions we build in profitable small and medium sized companies result in us securing large gains for this fund.
“Going forward, we are well placed to take advantage of the significant opportunities which still exist in Russian second and third tier stocks.”
The fund has a performance fee of 15% over a 12% hurdle and a 2% annual management fee.
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