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Audio – Prosperity sees Russian stocks rerating
Alexander Branis, chief investment officer of $4 billion stock fund Prosperity Capital Management, expects flatlining Russian stocks to rerate once investors feel more comfortable about political risks.
Concerns about the succession to President Vladimir Putin are overdone, Branis told the Reuters Russia Investment Summit. He is placing bets in the power and infrastructure sectors to profit from an accelerating investment boom in Russia.
Prosperity’s flagship Russia fund has outperformed the benchmark RTS index by 6.5 percentage points this year, while its specialist funds have done better. The Russian Prosperity Fund has posted compound annual returns of 33.5 percent since inception in 1996, while its Prosperity Quest power fund has returned an annualised 91.1 percent since 1999.