Deep value multi-strategy investment manager Worldview Capital Management, initially formed as part of Deutsche Bank's Quantitative Value Team but now independent, has launched an emerging markets multi-asset strategy believed to be able to range across major asset classes, and drawing on a diverse range of skill-sets and experience of individuals both within the firm and beyond it.
Deep value multi-strategy investment manager Worldview Capital Management, initially formed as part of Deutsche Bank’s Quantitative Value Team but now independent, has launched an emerging markets multi-asset strategy believed to be able to range across major asset classes, and drawing on a diverse range of skill-sets and experience of individuals both within the firm and beyond it.
The primary geographic focus of the team at Worldview Capital is Central and Eastern Europe, countries of the former Soviet Union, Central Asia and Africa.
The company has put its knowledge of these regions to work in its Eastern Hemisphere Strategies fund, which pursues a number of investment styles. These range from relative-value, event-driven including M&A and distressed debt, fundamental value and capital structure arbitrage.
Based in Switzerland and London, Worldview is understood to believe its investment model differs in some significant ways from rival hedge funds managed from major financial centres.
It has built up a network of relationships with external professionals – from sector specialists to local governments – in EMs themselves using these in part to pick up and then analyse investment opportunities.
Its contacts include consultants, industry experts and local brokers’ research teams. Worldview’s own employees also spend time in the local countries, as the firm is understood to hold as important understanding the personalities and ‘mentality’ of countries and businesses.
Around 40 experts Worldview works with help to analyse opportunities rapidly in a process that brings teams together to ‘mix local knowledge and Western investment experience’.
Each investment opportunity is typically tackled by a team comprising a local analyst, a local legal expert, consultants and investment professionals, and Worldview’s own portfolio manager.
Worldview then draws on the experience of seasoned legal, trading and settlement professionals whom it knows well, to execute in the best way on its trades.
Others may be drawn from the world of local governments and European Commission executive bodies (sometimes to carry out negotiations with local regulators), to make sure Worldview can execute its strategies and protect its rights as an investor.
Its latest offering is multi strategy, as Worldview’s co-founder Angelo Moskov (pictured) says: “Multi-class strategies, in our experience, yield much better performance, but we are still focused on a defined geographical area. You need multi-class strategies, especially if you are confined in a smaller geographical area in order not to miss opportunities.”
Investing across numerous asset classes may also help Worldview’s managers avoid the emergence of illiquidity in any one market.
Moskov says: “EM liquidity is generally higher in larger EM markets versus September 2008, but with a few notable exceptions such as Greece, Hungary and Northern Africa, where liquidity is poor and investors stay away from the markets. This is where we find most of the opportunities at the moment.”