One of the best-known Russian strategists is quitting the country after the backer of his Moscow-based hedge fund, Red Star Asset Management, pulled its mandate amid plummeting markets.

James Fenkner, founder and managing director of Red Star, is moving to Santa Barbara, California after working in Russia for 14 years. Fenkner took the decision after Erste Bank, an Austrian retail bank with a network across central and eastern Europe, withdrew its support for Red Star.

Erste did not respond to calls seeking comment. Fenkner said his relocation was mainly for family reasons. He said: “We believe that great fortunes will again be made in Russian shares, but one doesn’t need necessarily to live 24/7 in Moscow to participate…Like most investors, I want to fly in for a few weeks a year with a better global perspective.”

Fenkner set up Red Star in 2005 after seven years at Russian investment bank Troika Dialog as head of research and initially as chief strategist.

His departure from Russia follows the closure of several hedge funds operating in the region and a deteriorating investment climate for minority shareholders.

Many Russian funds, including Red Star, have switched in recent months to trading American and global depository receipts in London and New York because of domestic illiquidity and frequent market closures in Moscow.

Erste had represented 40% of the fund, which had stood at $150 million in assets under management last year. Redemptions by clients and a collapse in equity valuations have sliced the fund size to $12 million.

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