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 ...

Financial NewsJason Corcoran in Moscow10 November 2008 The closure of a Russian hedge fund run by Florin Investment Management has led to fears many more could go under as investors flee emerging markets.It is estimated about 70 hedge funds are operating in Russia and the Commonwealth of Independent States and analysts predict over half will be wiped out by next year.The closure of Florin FSU Credit Opportunities Fund, which was invested in real estate and equity collateralised debt, led to 10 lay-offs at the firm in Moscow and London.Florin’s principals Neil Smith and Aidan Freyne are hoping to buy the fund’s architecture from its shareholders at Trust Capital and relaunch the fund as a distressed assets vehicle.Smith was previously head of alternative investments at the UK’s Morley Fund Management while Freyne spent 19 years with Salomon ...

Hedge Funds in RussiaHedge Fund Managers in Russia StruggleBelow 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 ...

Hedge Funds in RussiaHedge Fund Managers in Russia StruggleBelow 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 ...

Hedge Funds in RussiaHedge Fund Managers in Russia StruggleBelow 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 ...

Business New Europe Jason Corcoran in Moscow July 9, 2008A detsky sad, or kindergarten, is an unlikely neighbour for a Russian hedge fund, but James Fenkner is not fazed by a little background noise. The founder and chief investment officer of Red Star Asset Management runs a friendly and informal investment shop on an unassuming residential street situated between Moscow's boulevard and garden ring roads. Red Star's team of seven have their heads buried in work as two-dozen two-year-olds run about shrieking seven floors below. It's also a family affair - Fenkner's sister Elizabeth plays a key role as the head of marketing. The firm was set up in 2005 after Fenkner quit Troika Dialog where he had served seven years as head of research and initially as chief strategist. "The market was just ...