Russian-Focused Pharos Funds Fall (Again) In Oct.

Dec 1 2008 | 12:22pm ET

Pharos Financial Group’s tri of hedge funds fell again last month amid the continuing sell-off in the Russian equity market.

During the month, the Pharos Russia Fund was down 12.9% (-36.4% YTD), the Pharos Gas Investment Fund was down 12.8% (-32.0% YTD), and the Pharos Small Cap Fund was down 27.4% (-46.6%). Meanwhile the MSCI Russia Index was down 35.3% in October and -65.6% YTD.

“October was the fifth consecutive month of losses for the RTS Index, and its 36% loss was the third worst month in the history of the Russian market after August 1998 (-56%) and May 1998 (-39%),” wrote Peter Halloran, founder. “Commodity prices continued to plummet during the month as demand destruction became apparent in both developed and emerging markets.  OPEC cut output targets at the end of the month, but oil prices continued to languish as demand very clearly has been impacted in developed markets.”

Overall, Halloran said the Russian government has been extremely proactive during the crisis with its announcements of financing and stimulus packages. Thus far, the government has made more than $200 billion available to the banking sector.

“The nearly $500 billion of surpluses built up over the last eight years give Russia the capacity to aggressively counteract the effects of this global crisis. And despite a slow start getting some of these programs implemented, it is clear that the government will use these resources as needed,” he said.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…