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Strategies & Market Trends : Investment in Russia and Eastern Europe

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To: Real Man who wrote (224)6/16/1998 1:18:00 PM
From: peter michaelson  Read Replies (3) of 1301
 
Vi:

One can short TRF and buy RNE simultaneously today for a fairly nice arbitrage. TRF is at a 38% premium to net asset value while RNE is at a 14% discount.

Since I have already established my position this morning I would now like others to do the same <g>.

I have done this arb in the past with good success. TRF and RNE are not perfect substitutes by any means, but when the market is as volatile as it has been lately, it is mostly systemic risk moving the stocks.

FWIW, Peter
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