Hedge Fund Managers in Russia Struggle
Source: http://feeds.feedburner.com/~r/richard-wilson-blog/~3/430292982/hedge-fund-managers-in-russia-struggle.htmlPosted on Thursday, October 23rd, 2008 | In Hedge Funds
Hedge Funds in Russia
Hedge Fund Managers in Russia Struggle
Below is an article on the Russian hedge fund industry and how it is fairing – which is not well at this point. This article is being added to our site’s Russian Hedge Fund Guide.
Up to half of Russian hedge funds could go out of business as the financial crisis sends investors fleeing and the stock market continues to fall, according to industry experts.
Speaking at the Russia Alternative Investment Summit on Wednesday, Simon Fentham-Fletcher, head of fund of hedge funds at Raiffeisen Bank, said in a worst-case scenario, 50 percent of Russian hedge funds could close. The primary source of failure will be a lack of funding as performance deteriorates and investors redeem their money, he said.
“If they’re not well-capitalised they can’t look after themselves properly. It’s expensive to run a hedge fund out of Russia and you can eat into your reserves very quickly,” said Fentham-Fletcher, who is based in Moscow.
Christoph Kampitsch, head of alternative investments for Erste Bank, said there were about 75 hedge funds operating in Russia but by January next year this number may be closer to 25. Fentham-Fletcher said the vast majority of hedge funds in Russia were equity focused with only minimal hedging — positions designed to reduce losses when markets fall — and as a result had been badly affected by the decline in the stock market.
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Tags: hedge fund managers in Russia, hedge fund manager in Russia, hedge funds in Russia, which hedge funds are in Russia, Hedge Funds in Moscow, Moscow Hedge Fund, Moscow Hedge Fund Manager
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Christoph Kampitsch, Erste Bank, Hedge Fund Software, Hedge Funds, Hedge Funds, Moscow, Moscow Hedge Fund, Raiffeisen Bank, Russia, Russia Alternative, Simon Fentham-Fletcher
 About Richard C. Wilson (http://richard-wilson.blogspot.com/)
Richard Wilson is a hedge fund consultant and head of the Hedge Fund Group (HFG). Richard writes articles on the hedge fund industry on a daily basis. Most of these articles are straight forward educational pieces on hedge fund strategies, terms & definition, trends, book reviews and interviews. Richard has written two books, The Hedge Fund Blog Book and Rainmaker. The Hedge Fund Blog Book is a collection of my blog posts downloadble for free at HedgeFundsBook.com. Rainmaker is a negotiation and sales book for investment professionals available in electronic, paperback and hardback form at Rainmaker.ws. Richard's articles have been picked up and used by Reuters, Fox Business News, HedgeCo, Hedge Fund Daily, Nielsons, Wealth Management Exchange, Investopedia.com and a couple dozen niche financial and investment focused blogs and email newsletters, most recently StraightStocks.com Richard loves networking and truly believes that if you freely give away your knowledge and lessons you have learned in business others will come to your aide when you need a favor or would like to form a business partnership. Email Richard at Richard@RichardCWilson.com |
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