Just about the best performing stocks in the world this year
Looks like Moscow-living American portfolio manager David Herne got his Russia call right on the money. He’s beating the market this year.
Herne was featured in the FORBES Investment Guide in December. Not that he was bragging about his sober take on the Wild East. He’s a humble guy. Still, Herne predicted that Russia would turn the corner at some point in 2016. If sanctions were removed — and they are unlikely to be removed — that would merely be a bonus.
“We never promise something we can’t deliver,” Herne said to me over a late breakfast at the Crowne Plaza in Moscow’s financial district last October. He runs the Specialized Research And Investment Group, a hedge fund for accredited investors domiciled in the Caymans. “I know the Russian market will be worth much more than it is today. I just can’t tell you when.”
How about now.
His Russian Growth fund is up 23.76% year-to-date ending May 31. That beats the Market Vectors Russia (RSX) exchange traded fund, up 16.7%; the MSCI , Emerging Markets, gold, oil, and the S&P 500. Only Brazil has done better after hitting the floor in December.
He’s earned some bragging rights for the first five months of the year. One of the company’s Herne mentioned as a must-have was Bashneft , listed on the Moscow Exchange and only open to those with access to a lower broker. It’s up 47% in rubles. That’s not all due to forex. The dollar has only declined around 8.5% to the ruble this year.