Global Equity Investment Fund
Contact
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Conservative
investment approach
Value approach when
selecting stocks – proven
as the best in the long-term
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Investing in developed
markets – USA and Europe
Partial protection
against market declines
Target
Fund objectives
Deliver long-term portfolio returns above the long-term growth values of the S&P 500 Index, outperforming the index in periods of decline or stability while possibly lagging behind the index in periods of rapid growth and overvaluation.
Long-term target return: 9–10% p.a. in USD with low volatility.
Investment strategy
Investment strategy
The fund is managed as a hybrid of an absolute return fund and a relative return fund. The fund portfolio comprises options and long positions in equities at fair prices.
The hybrid strategy implies that the fund is partially hedged against losses that may occur as a result of a correction in the developed markets, in particular the S&P 500.
With this objective in mind, the fund enters into:
- short positions – i.e. sells put options on stocks with strikes below market prices at the time of the sale (or "out of the money" options), thus reducing the volatility of the portfolio over the medium term;
- hedged long positions in stocks that protect against moderate market declines
This product is suitable for
Target Investor
An investor with a relatively high-risk tolerance, willing to incur temporary losses but receive a compensation of long-term returns, higher than those of more conservative funds. It is also an investor with a capital of at least a few hundred thousand dollars – the entry threshold is $100,000; holding 100% of the funds in equities is not recommended by any capital preservation and growth strategy.
ContactFund objectives
Deliver long-term portfolio returns above the long-term growth values of the S&P 500 Index, outperforming the index in periods of decline or stability while possibly lagging behind the index in periods of rapid growth and overvaluation.
Long-term target return: 9–10% p.a. in USD with low volatility.
Fund
Fund facts
Investment terms
Why this is profitable
Strategy advantages
Why this is profitable
Advantages of the structure
Results
Risks
Risk management
Description All investments carry some form of risk. Among traditional instruments, stocks are among the riskiest because shareholders' claims on a company are satisfied last; not only do they lose more in bankruptcy, but the volatility of stocks is higher than that of bonds of the same companies.
Risk management method The fund primarily sells puts on stocks with strikes below market prices (“out of the money” options). This strategy reduces the fund's losses when stock prices fall but also limits the returns during rising markets.
Description With a large proportion of a single position in the portfolio, its price correction can significantly reduce the profitability of the entire portfolio.
Risk management method The diversification risk is much higher when a fund invests in the same type of companies and if it invests at inflated prices. Therefore, our fund sets limits by country, industry and individual company, and evaluates each security before investing, rejecting overvalued ones.
Description Different exchanges offer different liquidity. Liquidity also depends on the size of the company and the proportion of shares traded on the stock exchange. If there is insufficient liquidity, the spread between the purchase price and sale price is higher, and shares can be bought at higher and sold at lower prices than in the case of similar securities that are more liquid. Also, large positions may require a longer time to buy or sell, during which the price can change significantly.
Risk management method Primarily, the fund invests in securities traded on American exchanges, which are the most liquid in the world. In addition, the size of the fund implies small positions that are acquired and liquidated within a short time.
Description Small and mid-cap stocks are more volatile because their business is less established; the discount rate reflecting the risk of investing in these companies is higher, and the market reaction to the news is usually stronger.
Risk management method The fund invests in small and medium-sized companies in rare cases, and the allocation to one company does not exceed 1%.
Description When opening short positions, in a traditional sense, losses can be unlimited.
Risk management method The fund enters short positions through the purchase of put options, which limits losses to the premiums paid for the options. The share of the fund's assets that can be allocated to short positions is limited to 1%.
Team
Video interviews
- Senior partner at Movchans’ Group, hedge fund GEIST investing in equities.
- Specialist in asset management since 2019, corporate finance, financial markets and asset valuation with 30+ years of experience.
- Formerly: Advisor at Rothschild Investment Bank; Director of Mergers and Acquisitions Practice at Deloitte; Vice President of Investment Banking at Troika Dialog; Visiting scholar at Harvard University School of Economics.
- Author of articles and books on economics and finance, including "The Warren Buffett Philosophy of Investment", published in 2015 by McGraw-Hill Education, and "Value Investing. Persons and Principles".
- Graduated from the Faculty of Economics at the Lomonosov Moscow State University, studied at the Master’s program at the Claremont Graduate School (California, USA). PhD in Economics.
- Building GEIST investment portfolio; responsibilities in the process of company fair value assessment and analysis of options strategies.
- In the past, involved in business valuation and intangible asset valuation at a private Russian company.
- Graduated from the Bachelor's Programme in Economics and Master's Programme in Strategic Financial Management at the Higher School of Economics.
- Specialist in financial consulting and audit with 10 years of experience.
- In the past, she worked as an external auditor at Ernst & Young, worked with the largest state-owned companies, small and medium-sized businesses and government agencies in the field of audit and professional ACCA training; areas of specialisations: oil and gas industries, energy, and mining. As a financial advisor to medium-sized companies, provided regular reporting to management and shareholders.
- Is a member of ACCA, a CFA II candidate and a certified specialist in AML.
- Graduated from the University of Sydney with a bachelor's degree in economics and finance.
- Contributes to building the ARGO and GEIST investment portfolio. Sspecializes in sourcing and analyzing investments in hedge funds and private debt funds.
- In the past – a McKinsey consultant. Also worked at Allianz Investment Management, specialising in analysis of investments in private debt funds.
- Graduated with honours from the MSc Economics-Finance program at the University of Freiburg; a Bachelor's degree from Nazarbayev University.
