Minimising directional exposure to emerging equity markets
enabled the OCCO Eastern European fund to limit its losses in
the crash of 2008, while fully exploiting the upside in
For most emerging market equity managers, 2009 was a year of
stratospheric gains - with some even posting triple-digit
returns. But those eye-popping results generally came after
disastrous performances in 2008, when many funds produced
losses so big that even their huge 2009 gains could not get
them back to anywhere near their high water marks.
But Charlemagne Capital's long-running OCCO Eastern European
fund did not follow that path. Although the fund enjoyed its
best year ever in 2009 with a gain of roughly 50%, and lost
money in 2008 like most of its peers, the strategy has never
put its investors on quite such a lurching rollercoaster ride
as other emerging markets funds.
This is entirely by design. The...