Illinois Firm Launches Iraqi-Focused Hedge Fund

Nov 2 2010 | 8:02am ET

Illinois-based hedge fund firm Global Capital Investments has launched a new fund that will primarily invest in shares listed on the Iraq Stock Exchange. The vehicle, the Iraq Fund L.P.,  may also invest up to 20% of its assets in private, less liquid, early-stage projects that focus on Iraq’s infrastructure and natural resources sectors.

Abraham Merchant and Kenneth Kuhn, managing directors of Global Capital Investments, say recent trends in Iraq make the petroleum-rich country a compelling investment opportunity.

“As Iraq’s economy transitions, it is in the process of adopting legal and regulatory reforms that will make its financial markets more attractive to outside investors,” says Merchant, pointing out that interest rates have fallen from 20% to 6% annually, exports have risen, the dinar is stabilizing, and the country has minimal national debt.

“The quality of corporate profits is rising and there’s economic and market support from the U.S. and internationally,” adds Kuhn, citing $3.6 billion economic aid package awarded to Iraq by the IMF in February 2010 and the $250 million package from the World Bank.

"Only a fraction of Iraq's known fields are in development while 80% of the country remains unexplored. As redevelopment progresses, it will further strengthen the overall economy for the Iraqi people," says  Kuhn.

According to the firm, the objective of the new fund is to seek long-term capital appreciation.


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of