Babylon Fund Spirals Downward In 2008

Jan 27 2009 | 11:19am ET

The Iraq-focused Babylon Fund dropped another 3% last month, bringing its year-to-date loss to 22.7%.

While the fund’s performance was not satisfying from an absolute return perspective, portfolio manager Björn Englund said its performance relative to other Middle East and North Africa funds, and frontier markets funds, were actually “quite attractive.”

“An Iraqi market that almost everybody perceived wrongly as one of extreme high risk, turned out truly to provide a relative uncorrelated, and lowly financial risk environment,” wrote Englund, in a letter to investors. “During the year, Iraq has not endured a single corporate bankruptcy among its 100 publicly listed companies, even less any bursts of financial bubbles nor any recapitalization/nationalizations of the private banking system.”

Neither aggressive deleveraging or forced selling have been issues on the Baghdad trading floor, according to Englund. Rather, he says most of the Iraqi strategic shareholders are currently raising their stakes on the basis that Iraqi equities are clearly undervalued and will rebound from their current depressed levels.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...