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James FenknerHead of Analytical Department, Troika Dialog
Country:
 USA |
Content:
- Early Life and Career
- Arrival in Russia
- Success at Troika Dialog
- Founding Red Star Asset Management
- Investment Strategy
- Industry Focus
- Performance and Outlook
Early Life and Career
James Fenkner was born in Seattle and raised in California. After graduating from Tufts University in Massachusetts, he began his career in finance at Fidelity Investments. Finding the work unfulfilling, Fenkner sought opportunities in Eastern Europe.
Arrival in Russia
In 1995, Fenkner accepted a position as head of research for the Moscow office of Robert Flemings. His time in Russia coincided with the 1998 financial crisis, which wiped out his personal savings. However, he stayed on, joining Troika Dialog as deputy head of research.
Success at Troika Dialog
Fenkner's influential research report, "How to Steal an Oil Company," in 1999 brought him into conflict with Yukos CEO Mikhail Khodorkovsky. Despite the controversy, Fenkner continued to rise through Troika Dialog's ranks, eventually becoming head of research.
Founding Red Star Asset Management
In 2005, Fenkner co-founded Red Star Asset Management with Tim Seymour and Tim McCarthy. Red Star manages the Red Star Double Alpha hedge fund, which is registered in the Cayman Islands with a minimum investment of $1 million.
Investment Strategy
Red Star Asset Management invests primarily in Russian securities, although it also operates in other Eastern European markets. The fund employs a long-short strategy, betting on both undervalued and overvalued stocks. This approach aims to reduce risk in volatile markets.
Industry Focus
Fenkner believes that the most promising sectors for investment in Russia are electric power, telecommunications, and consumer goods. He particularly favors RAO UES shares, believing they are undervalued compared to their foreign counterparts.
Performance and Outlook
Red Star Double Alpha has generated a 16.65% return for investors in the past year. Fenkner's cautious approach and belief in a neutral-to-market strategy have allowed the fund to minimize losses while capturing some upside. He remains optimistic about the long-term potential of Russian markets.
