Prosperity Capital Management is one of the largest Russia-focused asset managers in the world, with around USD 4.3bn of assets under management.
Prosperity Capital Management employs the same investment philosophy and methodology across all the assets under management, though broadly the investment vehicles can be separated into two strategies; fundamental value and special situations.
The fundamental value strategy seeks to access companies that have come further along the transformation from Soviet-era “production units” to more modern “Western-style” corporations, whilst the special situations strategy seeks to identify the triggers for these changes much earlier in the process.
There is a level of overlap between the two strategies and consequently the investment vehicles also. In general, as the fundamental value strategy is investing in companies that are more developed, they tend to be larger, more visible, better listed and more liquid than many of those in the special situations strategy.
Prosperity was founded in 1996 and since then the flagship fundamental value strategy has risen an annualised 16.3% as of 31 October 2019, against the 6.9% annualised increase in the MSCI Russia Index.
Prosperity's special situations strategy has grown an annualised 24.5% as of 31 October 2019 since its 1999 inception, considerably outperforming the 6.4% annualised rise in the MSCI Russia Index over this time.
Prosperity has achieved these returns for our investors without employing leverage and by utilising a bottom-up, long-only, active investor approach in Russia and the FSU.