Iraq-Focused Hedge Fund Rebounds In February

Mar 25 2008 | 10:38am ET

After getting off to a slow start in January, Godvig Capital’s US$15.4 million Iraq-focused Babylon Fund rebounded nicely last month to the tune of 10.3%.

All asset classes in the portfolio, including Iraqi bonds, oil equities and banking stocks, contributed to the fund’s rebound, according to portfolio manager Björn Englund.

“During the month we maintained our prime investment strategy to increase our fund's exposure in a broad-based manner into what we regard as undervalued blue chips on the Iraqi Stock Exchange,” Englund wrote in an investor letter. “Beyond what most market participants (still too often inexperienced and trend-following though) regard as obvious opportunities, we also start to scan for new opportunities in the pre-IPO market.”

Englund remains optimistic on the “normalization” of Iraq’s economic future noting the formation of a “functioning shadow market, with characteristics of OTC-structure” and a planned secondary market trading of bonds and T-bills. “Perhaps the best (?) sign of normalization took place recently; the first underground hard metal concert in Baghdad,” he notes.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The healthcare sector went on a tear beginning in 2011, thanks in large part to the passage of the Affordable Care Act and its impending implementat