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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
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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
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
Cossack Fund Manager Gleb Shestakov
Cossack Fund Manager Gleb Shestakov
- 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.
