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

Q&A: MackeyRMS's Chris Mackey On A High Tech Fix To Broker Votes

Jun 23 2017 | 8:17pm ET

The looming implementation of the EU’s MiFID II rules regarding research has put...

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

Steinbrugge: Asia-Focused Hedge Funds Offer Great Opportunities

Jun 23 2017 | 3:33pm ET

Emerging market strategies have outperformed their developed-market peers for five...

 

From the current issue of