My take from what I leaned visiting brokers in Moscow is that -- yes -- for the moment, at least, buying one of the US funds (LETRX, TRF or RNE) is the most secure and easily managed, means of investing.
The illiquidity of some of the individual issues, and deficit of information about them, infers that a full time manager is worth the premium, IMO. Many stocks aren't available for *any* price... many trades really rely on the brokers having relationships --- I take it that means frequent dinners, which can't be done from anywhere but Moscow. I expect funds managers dine frequently.
LETRX and TRF prospectuses show that both funds hold substantially the same -- Red Chip -- stocks. TRF is a "closed" fund, Lexington is "open." I *believe* this means that LETRX trades actively, while TRF holds the issues.... am I wrong on this?
When I first popped into town, I was full of Iqbal's thesis --- that the US market was THE place everyone wants to be in. Each an every one of the Moscow brokers I met laughed --- correcting me that each and every serious players in Moscow is in the *Russian* market, 'cuz that's there the growth is and will be.
BTW --- the greatest interest over there is in the "Second Tier," or companies. Ruble for ruble, that's where the sharp boys believe the highest returns will be. These are companies that are *not* the privatized national monopolies, the Red Chips. that the funds are in. How to intelligently invest, other than to have a surrogate on-the-scene, I haven't yet a clue.
It's a new market --- I expect it to grow from both the domestic needs of what may be the largest population of goods-starved people on the planet plus the value of the world's greatest natural resources...
As for ADRs, like Lukoil, et. al., I'm sure I know less about them than you do, and would like to learn. Could you post a word about ADRs?
bye,
/k1b0 |
