Are you going to visit companyes where you are investing?
Romanas, You wrote: Therefore, Fund's performance is not very much related to market performance per se, but to the skills of Fund manager to see potential companies.
So how investor can measure Your skill? Market performance in that case is Your benchmark, against what You will try to generate alpha with Your skill. You need to define market performance to be sure that You are beating it by gnerating alpha.
Absolute return funds do not follow benchmark in investment decisions, but almost all absolute return funds are defined targets too.
So how investor can measure Your skill? Market performance in that case is Your benchmark, against what You will try to generate alpha with Your skill. You need to define market performance to be sure that You are beating it by gnerating alpha.
Absolute return funds do not follow benchmark in investment decisions, but almost all absolute return funds are defined targets too.
If it is "nothing new" or it is something new - will be visible in results. Despite nice declarations of many competing vehicles, majority of funds offered in the market just buy well-known big caps - it is an open secret, it is enough to see portfolio composition of them. So at least from composition side it will be definitely different from Trigon, Avaron or Hansa. Different composition means different performance and lowered correlation.
Blink,
1) we target some 25-30 companies in portfolio, so one company's weight will be around 3-5%. Of course some positions might be upped to 7-8% if we feel especially positive.
2) Turkey - no. CIS - Russia, Ukraine, Moldova. Balkans - every country there, although I don't feel too happy about Croatia at the moment.
3) Macro outlook is positive, although some countries like Romania, Latvia are obviously overheating. Still I think landing won't be as dramatic as some Scandinavian analysts like to present. I like Romanian and Polish markets for their liquidity and big choice of companies. The markets I find challenging are - Croatia, Slovenia (expensive), Czech - small choice of investable securities, Bosnia, Montenegro, Macedonia, Moldova, Latvia, Slovakia - illiquid.
4) USD will be hedged most likely. Other currencies are appreciating - so maybe it is not that important.
5) issue fee - 2%, redemption fee - 0%, management fee - 2,5% annualy. No other hidden fees.
6) The supporting team is our Baltic Pro analysts with several years of experience of analysis, but we will hire some new people as well. The investments are chosen by investment committee that gathers together several active portfolio and fund managers to share ideas and experience.
7) Visiting all the companies in the region is not realistic. Baltic companies are covered by our analyst team, farther afield - we will rely on research of reputable market players like Erste, Deutsche Bank, Citigroup who do visit the companies.
1) we target some 25-30 companies in portfolio, so one company's weight will be around 3-5%. Of course some positions might be upped to 7-8% if we feel especially positive.
2) Turkey - no. CIS - Russia, Ukraine, Moldova. Balkans - every country there, although I don't feel too happy about Croatia at the moment.
3) Macro outlook is positive, although some countries like Romania, Latvia are obviously overheating. Still I think landing won't be as dramatic as some Scandinavian analysts like to present. I like Romanian and Polish markets for their liquidity and big choice of companies. The markets I find challenging are - Croatia, Slovenia (expensive), Czech - small choice of investable securities, Bosnia, Montenegro, Macedonia, Moldova, Latvia, Slovakia - illiquid.
4) USD will be hedged most likely. Other currencies are appreciating - so maybe it is not that important.
5) issue fee - 2%, redemption fee - 0%, management fee - 2,5% annualy. No other hidden fees.
6) The supporting team is our Baltic Pro analysts with several years of experience of analysis, but we will hire some new people as well. The investments are chosen by investment committee that gathers together several active portfolio and fund managers to share ideas and experience.
7) Visiting all the companies in the region is not realistic. Baltic companies are covered by our analyst team, farther afield - we will rely on research of reputable market players like Erste, Deutsche Bank, Citigroup who do visit the companies.
Henno,
as I already mentioned our target performance is 15-20% given current inflation environment. But the ultimate goal is to maximise performance. Our trial run gave 40% since last October, but it was only simulation.
as I already mentioned our target performance is 15-20% given current inflation environment. But the ultimate goal is to maximise performance. Our trial run gave 40% since last October, but it was only simulation.
Romanas wrote: majority of funds offered in the market just buy well-known big caps - it is an open secret, it is enough to see portfolio composition of them.
Thats is right, but usually reason is fund size.
If You are managing lot of money in Eastern Europe, You are 2 ways: buy big caps too or be in the money, cause You can`t invest in small caps, there is no available free float, so at the same manager skill smaller fund may have advantage.
Thats is right, but usually reason is fund size.
If You are managing lot of money in Eastern Europe, You are 2 ways: buy big caps too or be in the money, cause You can`t invest in small caps, there is no available free float, so at the same manager skill smaller fund may have advantage.
Ok, Henno, but it is a problem of those huge funds. They should have thought over what they would do when they have more money than they can effectively invest, e.g. launch other funds that too much money does not chase too few stocks. We are an upstart and can act nimbly in the market - and this is what we are going to do. When we will reach that critical size that new money can't be invested according to our philosophy we will discontinue active marketing of this fund and offer other, smaller vehicles to our investors.
To Mihkel Oja. Puust ja punaseks: esimine päev on täna?
vums,
Jah, täna on esimene päev. Kuid vastavalt fondi tingimustele loetakse peale 12 Tallinna aja järgi laekunud ostukorraldused laekunuks järgmisel pangapäeval ehk siis need, kes saatsid oma ostukorralduse enne 12, sisenevad fondi tänase NAVi pealt (10 eurot) ja need, kes saadavad ostukorralduse peale 12, sisenevad fondi esmaspäevase NAVi pealt.
Lisaks veel niipalju, et tänane NAV on teada, so 10 eurot. Esmaspäevane NAV sõltub juba esmaspäeval tehtud tehingutest. Esimesed investeeringud tehaksegi esmaspäeval.
Erinevalt nt Avaronist ei korraldanud meie mingit märkimisperioodi. Avasime fondi investoritele täna hommikul ning tänane päev on kõikide tingimuste poolest täpselt samasugune nagu homme või esmaspäev.
Jah, täna on esimene päev. Kuid vastavalt fondi tingimustele loetakse peale 12 Tallinna aja järgi laekunud ostukorraldused laekunuks järgmisel pangapäeval ehk siis need, kes saatsid oma ostukorralduse enne 12, sisenevad fondi tänase NAVi pealt (10 eurot) ja need, kes saadavad ostukorralduse peale 12, sisenevad fondi esmaspäevase NAVi pealt.
Lisaks veel niipalju, et tänane NAV on teada, so 10 eurot. Esmaspäevane NAV sõltub juba esmaspäeval tehtud tehingutest. Esimesed investeeringud tehaksegi esmaspäeval.
Erinevalt nt Avaronist ei korraldanud meie mingit märkimisperioodi. Avasime fondi investoritele täna hommikul ning tänane päev on kõikide tingimuste poolest täpselt samasugune nagu homme või esmaspäev.
kui palju on praegusel hetkel huvilisi? (ma ise ka tillukese summaga oma esimest fondi ostmas;))
mulle meeldib see semantiline pool asja juures: pidev käibe ja kasumi kasv, sissetulekute hüppeline kasv, laiaulatuslik ja pikalt kestev makrotrend jne.
vau.
Üks point mis tutvustuse lugemisel eriti silma jäi: pikaajaliselt ületada nii aktsiaturge kui ka samas piirkonnas tegutsevaid konkureerivaid aktsiafonde.
Vaadates selle piirkonna aktsaiturgude ja aktsiafondide tootlusi, siis tuleb LHV fondi tootlus väga kõva!? :-)
Vaadates selle piirkonna aktsaiturgude ja aktsiafondide tootlusi, siis tuleb LHV fondi tootlus väga kõva!? :-)
Miks see veider tundub. Oleneb täiesti, mille sa baasiks võtad.
kas sellele fondile saab võimendust ka kasutada? millises määras?
Hi,
Pardon my complete ignorance, but who are you Mr Bulatovas?
What is your track record with alpha generation in Eastern Europe?
What are the main sources of your alpha generation so far, what will they be?
What is the size of portfolios you have handled?
Who exactly is the "supporting team" and their experience?
You guys seem to be attempting a VERY long shot here...
Good luck!
Pardon my complete ignorance, but who are you Mr Bulatovas?
What is your track record with alpha generation in Eastern Europe?
What are the main sources of your alpha generation so far, what will they be?
What is the size of portfolios you have handled?
Who exactly is the "supporting team" and their experience?
You guys seem to be attempting a VERY long shot here...
Good luck!
Hi, matrox!
Regarding my background. Now, I am obviously employee of LHV Varahaldus, the designated Fund manager. My previous experience - I was working at second biggest insurance company in Lithuania, managing its technical provisions (i.e. all investment portfolio). Of course it was "one-client fund", not something distributed publicly - but it is not different from mutual fund, having almost the same restrictions, control and so on. The annual return achieved was in the range of 30-50%, but those were heady 2003-2005 years. Before that I had a stint in Poland, being deputy CFO of Postal bank in Poland, and even earlier - I worked as corporate banker at Latvian bank.
The question about "alpha sources so far" is put incorrectly as the Fund got registered only couple of days ago, thus, there is no track record yet to discuss.
The managed portfolios ranged between 500 mln zloty (~ 130 m € Postal bank) and 130 mln Lt (~ 40 m € PZU Lietuva).
Thanks for your good wishes ;)
Regarding my background. Now, I am obviously employee of LHV Varahaldus, the designated Fund manager. My previous experience - I was working at second biggest insurance company in Lithuania, managing its technical provisions (i.e. all investment portfolio). Of course it was "one-client fund", not something distributed publicly - but it is not different from mutual fund, having almost the same restrictions, control and so on. The annual return achieved was in the range of 30-50%, but those were heady 2003-2005 years. Before that I had a stint in Poland, being deputy CFO of Postal bank in Poland, and even earlier - I worked as corporate banker at Latvian bank.
The question about "alpha sources so far" is put incorrectly as the Fund got registered only couple of days ago, thus, there is no track record yet to discuss.
The managed portfolios ranged between 500 mln zloty (~ 130 m € Postal bank) and 130 mln Lt (~ 40 m € PZU Lietuva).
Thanks for your good wishes ;)
mul oleks selline küsimus: kuidas kõlaks iiri keeles lause: "kui Arno isaga koolimajja jõudis, olid tunnid juba alanud?"
But (still) good luck!
But (still) good luck!
Rather unusual question, Kristjan - but the answer is:
Nuair a thánig Arno lena athair go dtí an scoil, do bhí na ceachtanna críochnaithe fós". Any more questions/desires? ;)
Nuair a thánig Arno lena athair go dtí an scoil, do bhí na ceachtanna críochnaithe fós". Any more questions/desires? ;)
ok, here we go: do you agree that big part of the consumption boom in the CEE economies is based on good global liquidity and not on their own savings, therefore it is sensitive to possible international liquidity crunch? As work and lack of good investment ideas have been more and more replaced by increasing leverage IMO there is possibility, that this focus will backfire in the case of rising default rates (at historically low levels at the moment) and decreasing risk appetite. Do you belive in the American (&UK) kind of happily leveraging consumerism globally IN THE LONG RUN?
Kristijan,
Your contemplations look logical, but not valid for CEE. American (&UK) money does not finance consumption in the region. Bar for odd exceptions (AmCredit, GE Money) almost all money in the region comes from Western Europe. In tightly integrated EU market (and especially after accession to euro in the countries of the region) the natural logic will be turned on its head as the money inside euro zone will always look for the most profitable deployment, global liquidity considerations won't matter too much. In the words of ECB - "it is meaningless to talk about current account deficit inside of eurozone - it is akin to trying to measure current account deficit of Tennessee or Iowa". I fully subscribe to this opinion. I believe we are on the threshold of a great "leap forward" in CEE countries. The gap of 50 years which scarred Eastern Europe gives an ample scope for reconstruction, infrastructure development, industrial upgrade for many years to come - and this plus structural funds of EU will underpin steady growth in the region.
Your contemplations look logical, but not valid for CEE. American (&UK) money does not finance consumption in the region. Bar for odd exceptions (AmCredit, GE Money) almost all money in the region comes from Western Europe. In tightly integrated EU market (and especially after accession to euro in the countries of the region) the natural logic will be turned on its head as the money inside euro zone will always look for the most profitable deployment, global liquidity considerations won't matter too much. In the words of ECB - "it is meaningless to talk about current account deficit inside of eurozone - it is akin to trying to measure current account deficit of Tennessee or Iowa". I fully subscribe to this opinion. I believe we are on the threshold of a great "leap forward" in CEE countries. The gap of 50 years which scarred Eastern Europe gives an ample scope for reconstruction, infrastructure development, industrial upgrade for many years to come - and this plus structural funds of EU will underpin steady growth in the region.