Griffon quarterly report - capital markets update September 2017Griffon Capital
Quarterly report on Iran's capital markets and outlook, September 2017
IN THIS ISSUE:
• An update on the Fund’s portfolio since inception, including recent tactical shifts, a recap of Iran’s capital markets, and a reminder of our overall investment principles
• A quantitative top-down and industry-wide assessment of corporate earnings since JCPOA and sanctions removal
• A detailed analysis of the Iranian banking sector, including:
- An introductory overview
- The macro backdrop
- A review of the players in an increasingly fragmented sector
- A discussion of capital adequacy, asset quality and earnings quality
- A comparison of the sector to its EM, FM and EU counterparts
- A top-down scenario analysis of the sector’s imminent recapitalisation
Building a systematic stock portfolio in only a few hours per yearStockopedia
Ed Page Croft reveals the simple but powerful systematic stock portfolio strategy that has helped him consistently achieve market-beating returns. To access the webinar in full please visit: http://why.stockopedia.com/creating-a-portfolio/
This Open ended Fund of Funds Scheme is suitable for investors who are seeking*:
1. Long-term capital growth
2. Investment in units of overseas funds which invest in equity, debt and short term securities of issuers around the world
3. High Risk**
*Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them.
**Risk may be represented as:
Low: Investors understand that their principal will be at low risk
Moderately Low: Investors understand that their principal will be at moderately low risk
Moderate: Investors understand that their principal will be at moderate risk
Moderately High: Investors understand that their principal will be at moderately high risk
High: Investors understand that their principal will be at high risk
Griffon quarterly report - capital markets update September 2017Griffon Capital
Quarterly report on Iran's capital markets and outlook, September 2017
IN THIS ISSUE:
• An update on the Fund’s portfolio since inception, including recent tactical shifts, a recap of Iran’s capital markets, and a reminder of our overall investment principles
• A quantitative top-down and industry-wide assessment of corporate earnings since JCPOA and sanctions removal
• A detailed analysis of the Iranian banking sector, including:
- An introductory overview
- The macro backdrop
- A review of the players in an increasingly fragmented sector
- A discussion of capital adequacy, asset quality and earnings quality
- A comparison of the sector to its EM, FM and EU counterparts
- A top-down scenario analysis of the sector’s imminent recapitalisation
Building a systematic stock portfolio in only a few hours per yearStockopedia
Ed Page Croft reveals the simple but powerful systematic stock portfolio strategy that has helped him consistently achieve market-beating returns. To access the webinar in full please visit: http://why.stockopedia.com/creating-a-portfolio/
This Open ended Fund of Funds Scheme is suitable for investors who are seeking*:
1. Long-term capital growth
2. Investment in units of overseas funds which invest in equity, debt and short term securities of issuers around the world
3. High Risk**
*Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them.
**Risk may be represented as:
Low: Investors understand that their principal will be at low risk
Moderately Low: Investors understand that their principal will be at moderately low risk
Moderate: Investors understand that their principal will be at moderate risk
Moderately High: Investors understand that their principal will be at moderately high risk
High: Investors understand that their principal will be at high risk
The link between risk and reward on the stock marketStockopedia
Ed Page Croft helps private investors explore the link between risk and return through the new Stockopedia RiskRatings and StockRank Styles - available now for every stock in the market.
10 Key principals of using evidence investing to improve your odds of success in reaching your goals. This includes embracing the market and using diversification.
The Cogent Advisor, and independent wealth manager in Chicago helping successful professionals simplify their complex financial lives and reach their goals. 312-382-8388. www.thecogentadvisor.com.
Strategy&’s 15th annual study of CEOs, Governance, and Success highlights the value lost by poor CEO succession planning and what companies can gain by better planning.
Debt outlook and Asset Allocation: Through this PowerPoint deck, explore insights into Fixed Income and Equity regarding the variables driving current market situation and the outlook for 2022 that will impact mutual fund investments.
www.Quantumamc.com
До бібліотеки, подарованої нашому університету, входять видання, що охоплюють широке коло інтересів наших викладачів та студентів. Це і спогади учасників та очевидців подій в Україні, і релігієзнавча література, і художні видання, і літературознавчі, видані в Україні і за кордоном. Книги переважно українською мовою, але можна знайти книги і англійською мовою, і німецькою, і польською, і французькою, і польською, і навіть португальською і хорватською.
The link between risk and reward on the stock marketStockopedia
Ed Page Croft helps private investors explore the link between risk and return through the new Stockopedia RiskRatings and StockRank Styles - available now for every stock in the market.
10 Key principals of using evidence investing to improve your odds of success in reaching your goals. This includes embracing the market and using diversification.
The Cogent Advisor, and independent wealth manager in Chicago helping successful professionals simplify their complex financial lives and reach their goals. 312-382-8388. www.thecogentadvisor.com.
Strategy&’s 15th annual study of CEOs, Governance, and Success highlights the value lost by poor CEO succession planning and what companies can gain by better planning.
Debt outlook and Asset Allocation: Through this PowerPoint deck, explore insights into Fixed Income and Equity regarding the variables driving current market situation and the outlook for 2022 that will impact mutual fund investments.
www.Quantumamc.com
До бібліотеки, подарованої нашому університету, входять видання, що охоплюють широке коло інтересів наших викладачів та студентів. Це і спогади учасників та очевидців подій в Україні, і релігієзнавча література, і художні видання, і літературознавчі, видані в Україні і за кордоном. Книги переважно українською мовою, але можна знайти книги і англійською мовою, і німецькою, і польською, і французькою, і польською, і навіть португальською і хорватською.
DSP World Agriculture Fund -
An open ended Fund of Funds Scheme investing in Agricultural companies through International funds
This Open-ended Fund of Funds Scheme is suitable for investors who are seeking* :
1. Long-term capital growth
2. Investment in units of overseas funds which invest primarily in equity and equity related securities of companies in the agriculture value chain
3. High Risk**
*Investors should consult their financial advisors if in doubt about whether the Scheme is suitable for them.
**Risk may be represented as:
Low: Investors understand that their principal will be at low risk
Moderately Low: Investors understand that their principal will be at moderately low risk
Moderate: Investors understand that their principal will be at moderate risk
Moderately High: Investors understand that their principal will be at moderately high risk
High: Investors understand that their principal will be at high risk
SBI Magnum Multicap Fund: An Open-ended Growth Scheme - May 17SBI Mutual Fund
SBI Magnum Multicap Fund provides investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum and in debt and money market instruments. To learn more about this mutual fund check SBI Mutual Fund page
https://www.sbimf.com/en-us/equity-schemes/sbi-magnum-multicap-fund
KB Star Funds - Presentation Material (201606)kbasset
Please note that marketing materials without an approval code granted from the
Compliance Division of KB Asset Management are not official materials authorized
under our internal procedure. This marketing material is for general information
purposes only and subject to change. Investors should be aware that this presentation
does not purport to be a complete explanation of risks and other risks may also be
relevant from time to time. In the future the Fund may be exposed to risks that are
currently difficult to predict. Risks that are not described in it are considered as
immaterial at the moment, but they may become substantial later on and adversely affect
the fund. KB Asset Management does not guarantee investment decisions and
investment outcomes based on the information of this marketing material.
Approval Code Granted from the Compliance Division of KB Asset Management: 2015_336
1. Alexey Debelov, CFA
Head of Equity and Structured Products
Ten years of experience in Asset Management
Solid outperformance record
Intelligent investment
Russian and Global strategies
Equity and Structured Products
Head of Equity
Over 5 years as Head of Equity out of 7
years as Portfolio Manager
Product originator and Portfolio
Manager
Two Global and two Russian equity
strategies
All products markedly outperform the
market and peer products
Scale: AuM up to USD 50mn
Head of Structured Products
Total sales over USD 40mn over 4 years
Some 30 notes sold out of 100 marketed
Product menu for various geographies
and risk profiles
Both in-house construction and
distribution of global leaders' products
Established contacts with leading
providers
Working Experience
Partner, Equity and Structured Products Portfolio Manager with FP Wealth Solutions
Head of Equity, Head of Structured Products, Portfolio Manager with Third Rome Plc
Acting Portfolio Manager, Analyst with Renaissance Investment Management
Chief Specialist, Downstream, TNK-BP Oil&Gas Co
Head of Investment Department, Metalloinvest Holding Co
Related Activities
Lecturer on Portfolio Management and Equity Market at NRU-HSE Masters and MBA programs
Mentor of NES CFA research competition student team
Contacts
Phone: +7 (910) 482 4200
E-mail: debelov@gmail.com
2. Product: Russian Value Small-Cap at Third Rome Plc and
FP Wealth Solutions
Role: Originator, Portfolio Manager.
Key Fact: client assets invested have appreciated more than 2.5 times the 7+ years since inception
while the market returned zero.
The strategy’s objective is the maximization of total return on capital by pursuing a combination of
capital appreciation and income generation investing primarily in a portfolio of undervalued equities.
Investments include issuers with primary focus on companies with principal business activities in Russia.
The strategy aims to outperform the second-tier index by superior stock-selection, which has been the
dominating contributor to its past results. For each small cap stock included in the portfolio I require
visible upside, events triggering value unlock, and exit strategy.
The outperformance is continuous, strategy beating index every year. No Russia-dedicated fund has
shown even close performance over the same period.
Small Caps Value Equity strategy performance since inception vs RTS-2
benchmark (gross)
2016 2015 2014 2013 2012 2011 2010
Since inception
(total)
Strategy 67.9% 21.9% -39.7% -6.3% 16.7% -10.6% 75.7% 158.6%
RTS-2 107.7% 4.4% -47.0% -20.8% 3.2% -31.8% 56.8% 1.7%
Strategy’s profile
Inception: October 19, 2009
Prime Broker and Custodian: Otkritie Securities
Ltd, UK
Min. investment: $500,000
Currency: USD
Total NAV: up to $50mn on peak
Liquidity: biweekly
Benchmark: RTS-2 index
Style: Small Cap, Value
Geographic focus: Russia
Expectation
Investment horizon: over 3 years
Expected return (net): 15%
Expected volatility: 25%
Annual Fees
Management fee: 2%
Performance fee: 20%
Placement fee: none
Withdrawal fee: none
-100%
-50%
0%
50%
100%
150%
200%
Oct09
Dec09
Feb10
Apr10
Jun10
Aug10
Oct10
Dec10
Feb11
Apr11
Jun11
Aug11
Oct11
Dec11
Feb12
Apr12
Jun12
Aug12
Oct12
Dec12
Feb13
Apr13
Jun13
Aug13
Oct13
Dec13
Feb14
Apr14
Jun14
Aug14
Oct14
Dec14
Feb15
Apr15
Jun15
Aug15
Oct15
Dec15
Feb16
Apr16
Jun16
Aug16
Oct16
Dec16
Strategy Benchmark
3. Product: Global Equity at FP Wealth Solutions and Third Rome Plc
Role: Originator, Portfolio Manager.
Key Fact: The strategy has been steadily and materially outperforming the index and similar funds
of leading global asset managers.
The strategy’s objective is the long-term asset growth by investing in global equities and seeking select
undervalued stocks. The strategy is designed for investors aiming to build a global equity portfolio and is
focused primarily on the developed markets. The overall approach is alpha-beta separation, when
investment manager overweighs the attractive stories he has studied vs index.
Global Equity strategy performance since inception vs MSCI ACWI ETF (gross)
2016 2015 2014 2013 2012
Since inception
(total)
Strategy 18.2% -1.2% 6.9% 18.7% 18.2% 75.4%
MSCI ACWI 6.0% -4.6% 1.5% 19.8% 14.0% 40.3%
Strategy’s profile
Inception: January 1, 2012
Prime Broker and Custodian: Otkritie Securities
Ltd, UK
Min. investment: $500,000
Liquidity: daily
Benchmark: MSCI ACWI
Style: Equity, Value
Geography: Global
Expectation
Investment horizon: over 3 years
Expected return (net): 12%
Expected volatility: 15%
Annual Fees
Management fee: 1%
Performance fee: 10%
Placement fee: none
Withdrawal fee: none
0%
10%
20%
30%
40%
50%
60%
70%
80%
Dec11
Feb12
Apr12
Jun12
Aug12
Oct12
Dec12
Feb13
Apr13
Jun13
Aug13
Oct13
Dec13
Feb14
Apr14
Jun14
Aug14
Oct14
Dec14
Feb15
Apr15
Jun15
Aug15
Oct15
Dec15
Feb16
Apr16
Jun16
Aug16
Oct16
Dec16
Strategy Benchmark
USA
48,9%
Japan
9,1%
Germany
8,4%
UK
4,5%
Korea
3,2%
France
2,8%
Canada
2,5%
China
1,5%
Other
19,1%27,4%
19,5%
14,5%
12,4%
9,1%
7,6%
4,4%
2,8%
2,3%
Consumer…
Finance
Industrials
IT
Energy
Healthcare
Materials
Telecoms
Utilities
4. Product: RenShares Utilities Fund at Renaissance Investment
Management
Position: Acting Portfolio Manager.
Key Fact: outperformance under the pressure of massive redemption.
This closed-end fund’s investment goal was to achieve long-term appreciation of assets by investing in
Russian Utilities sector during its restructuring starting 2006.
I was acting PM for the Fund for almost 5 months, raising cash for its $90mn redemption in the
meantime. Despite that constraint, the Fund managed to outperform the sector indices by over 14% during
the period.
Before that, I was the analyst for utilities and other small caps for 2.5 years with Renaissance Investment
Management.
Fund’s profile
Inception: March 10, 2005
Total NAV: up to $160mn
Type: Close-end
Benchmark: RTSEU$ Index
Style: Restructuring play, Utilities
Geography: Russia
5. The Rationale of Value Investing
“Obvious prospects for physical growth in a business do not translate into obvious profits for
investors. Operations for profit should be based not on optimism but on arithmetic.”
Benjamin Graham, professional investor, the father of value investing approach
Value investors do not try to forecast market movement. They seek companies that are temporarily
undervalued relative to either asset value or generated cash flows.
Reaction on market movement can be best described again by Benjamin Graham: “Basically, price
fluctuations have only one significant meaning for the true investor. They provide him with an
opportunity to buy wisely when prices fall sharply and to sell wisely when they advance greatly”.
Thus, we do not wait for the market to be cheap to buy, but look for ever-present opportunities.
During the low times such as current Russian market, these opportunities are abundant.
Due margin of safety is applied: only companies with a solid financial position are considered. An
overleveraged company can face credit event long before the market improves for it to recover its true
value. Same is true for an overleveraged portfolio.
Value stocks earn higher current income on investment through dividends, thus monetizing low P/E.
Despite Modigliani and Miller critique, we believe dividends to be beneficial, as they produce both
current income for immediate disposal and increase the certainty of return from the stock.
As the value investor does not attempt to capture market movements, the portfolio has low turnover
and therefore the investor does not lose on fees and spreads (effect described by Terrance Odean,
Finance Professor at University of California, Berkeley).
Therefore, value strategy by construction avoids behavioral traps when psychology drives
investor to loss-making steps:
Excessive growth expectation and overoptimism in general, reason for massive
underperformance of IPOs and growth style over the history.
Gambler’s fallacy and “hot hand”, making market-timers lose on chasing false trend.
The timing when the potential will realise is not determined, but the reasons for growth are.
Historical observations confirm the outperformance of value stated by Fama and
French:
6. Investment Approach
LowRegulation Risk
Dramatic underweight in state-owned
companies,especially utilities, no
unfounded bets on regulation
improvement (tariffs,taxes or
dividends)
Friendly Controlling
Shareholder
ormanagement are nearly the
only way for the minority
shareholderto lay claim on
company’svalue.
Dividend Yield
Investorbenefits
directly from cheap
valuation,decreasing
payback risks.
Corporate Actions
Seek hidden value unlocked by
M&A, IPO, buyout,change in
dividend policy.
Hidden Growth
Investingin numeroussolid
growth stories pushed cheap by
the general low-growth
landscape.
PM skill
Finding value
trades with solid
methodology and
track-record.
Value
Top
Performance
Intelligent
Risk-Taking