Troika Dialog has launched a Cayman islands-registered hedge fund the Troika Russia Fund (TRF), with assets of over USD 40 million.
TRF employs a successful long/short equity strategy operated and developed by the fund's Investment Advisor, ZAO Troika Dialog Asset Management in Moscow over the last three years.
The investment objective of the fund is to achieve long term total return through investment primarily in the publicly-traded equity-related securities of companies operating in Russia and to a lesser extent, other Commonwealth of Independent States (CIS) countries which means at least initially chiefly Ukraine and Kazakhstan. The fund expects to achieve this primarily through capital appreciation although there may well be some current income.
TRF may take both long and short positions and employ a variety of derivatives strategies, using top down and bottom-up fundamental research and proprietary valuation models.
The fund will be available to professional investors only on a private placement basis and offers them the choice of investing in either the partnership interests or listed shares. TRF has four share/partnership classes, denominated in USD or in Euros and offering either monthly or bi-annual dealing. The shares are listed on the Irish Stock Exchange. The Prime Broker is Deutsche Bank and JPMorgan Tranaut is the Fund Administrator.
The launch of TRF follows the appointment in 2005 of Stephen Cohen as Managing Director of Troika Dialog (UK), which is responsible for the distribution of TRF globally and for client service. Stephen Cohen is a Director of the General Partner of the TRF limited partnership and of the TRF feeder fund. Before joining Troika Dialog, he was CEO of EMEA business and head of the London office of Putnam Investments. He has worked in the asset management business for over 25 years.
'The Troika Russia Fund allows professional investors outside Russia to benefit from the extensive investment experience of Troika Dialog, a leader in the Russia and CIS financial markets,' says Cohen. 'There is a wide range of investment opportunities in the Russian and CIS markets and this range continues to increase as liquidity improves and as new companies come to market. Although the region is often viewed purely as a resource/commodity based economy, there are many other companies besides. The economic growth prospects remain good and Russia's macroeconomic strength and stability continue to improve.
'The rapid recent rise in importance of the Russia plus CIS region's economies and stock markets means that investors must not only understand what is going on in the region but are increasingly keen to take advantage of the opportunities. Given recent strong performance over the last seven years it will be important in times to come to be able to manage the risks of investing in the region, through the use of short positions as well as long positions and through the use of the rapidly growing derivatives market. "