Charlemagne sticks to its guns with market-neutral approach to EM equities

Wed Feb 24, 2010




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 2009

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.


Andy Wiles


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...

ISSN: 2151-1845 / CDC10004H

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