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Cossack Fund (HY EM bonds)

Portfolio of short-dated fixed-income instruments with low credit ratings

Outperforms the JP Morgan EMBI Plus Index by 4.6% a year from 1999 through December 2024

26-year history

Monthly liquidity

Strategy

Invests in short-dated, low-grade papers in which managers see significantly less risk than that priced in by the market

Assets

Short-dated bonds rated BB+ and lower

Better than

Portfolio of short-dated bonds from EM issuers and with low credit ratings

Who it’s for

Investors who want to earn income above that from medium- and low-quality bond portfolios, but with lower volatility

Target net return

7-8%

Risk profile

In line with portfolio of high-yield bonds

Historical Profitability

Cossack vs key indexes

Cossack Fund

JP Morgan EMBI Plus Index

Bloomberg Global High Yield Index

HFRX Fixed Income - Credit Index

Pros

Historical returns considerably higher than that of peer indexes alongside lower volatility

Reliable infrastructure

Transparent results

High liquidity

Cons

Risk of mistake by managers that leads to losses in a specific paper

Value of portfolio somewhat depends on direction of high-yield bond market

Gleb Shestakov, Fund Manager

28 years of experience in managing investments in EM debt securities
Graduated from Moscow State University, wrote dissertation at Oxford University
Started GFM Cossack Bond Co in late 1990s; now comanages over $100 mln in assets as managing partner
Founded, became managing director of Global Fund Management SA in August 1992
Contributed in 1995 to structuring the first fund solely dedicated to investing in Russian and CIS fixed-income instruments – the Templeton Russian and East European Debt Fund – and served as an investment adviser for the fund
Initially worked as a journalist in the UK; from 1991 was a management consultant for a number of Russian projects in London and Moscow

Minimum initial investment:

$100,000

Bank:

VP Bank

Investment horizon:

Two years and longer

Broker:

VP Bank

Auditor:

Baker Tilly

Administrator:

Cyprofund Administration Services Ltd

Andrey Movchan on Cossack

To invest successfully, you need to have a sustainable advantage over the market. Can experience, talent and hard work be such an advantage? The managers of the Cossack Fund, led by Gleb Shestakov, show that they can.

Cossack has been in the short-dated bond market for over 26 years, with its average annualized return for that period beating the S&P 500 amid significantly lower volatility!

Of course, it's not just talent, but also the approach. Cossack is a special situations fund. The managers carefully select papers whose real risks are significantly lower than what the market is pricing in. Meanwhile, their short terms to maturity allow the managers to predict situations with greater accuracy.

There are myriad funds in the market that invest in fixed-income instruments. But in the high-yield niche, I choose Cossack – I have yet to find another team with such a long, successful track record.

Contact us

If you have any questions, write to us and we will get back to you as soon as possible.