Monte Cristo Capital Limited has launched a new emerging market fund focused on capturing fundamental long-term value from identifying transformational political economy change in smaller emerging markets.
The managers will seek to generate alpha by adopting a tactical, event-driven approach to stock selection, using a top-down analysis of positive sovereign political and economic reform as a filter for investment decisions. The fund is intentionally designed to focus on higher risk and less liquid emerging markets, and will seek to achieve returns of 30-35% per annum.
'We believe our strategy is unique in focusing on investing globally in listed equities in smaller emerging markets from a tactical political economy standpoint,' says Adam Cleary, Portfolio Manager. 'Most existing emerging market funds focus on the largest and most liquid stocks in the BRIC markets, or have a narrow regional or country focus. We are seeking to offer an alternative to this approach by moving out along the investable boundary to capture transformational change in emerging markets at an earlier stage in the economic development process and to rotate between markets as equitisation and liquidity improves enabling us to fully capture the underlying value in these assets.
'We believe that this is the right time for a Fund like ours. Our strategy is to take advantage of the immense opportunities engendered by the globalization process in a number of emerging countries that are beginning to embark on a series of extensive economic reforms'.
The fund is an Experienced Investor Fund domiciled in the Isle of Man. Investing in the fund requires a six-month lock-in and dealing is monthly for subscriptions and quarterly for redemptions. Given the nature of the fund's investment strategy, it is only appropriate for experienced investors who are comfortable with emerging market investment and with a higher degree of risk. The fund cannot accept any investment by US persons.'
Background notes: Monte Cristo Capital Limited is a specialised investment management firm, based in London and authorised and regulated by the FSA in the conduct of investment business. Monte Cristo Capital PCC PLC is an open-ended investment company incorporated in the Isle of Man as an Experienced Investor Fund; Monte Cristo Capital Emerging Markets Fund is a designated Protected Cell of this company.