Yulia Bushueva (pictured) has been appointed Managing Director at Arbat Capital Management (Arbat Capital), with responsibility for launching The New Kremlin Fund, which will focus on equities from Russian companies, hedging the political risks of the 2012 Elections, through investments in other developing markets, such as Brazil and Turkey.
Bushueva joins Arbat Capital from UniCredit Securities Ltd where she was Head of Research, managing the integration of the London and Moscow research teams and responsible for the marketing strategy.
As a strategist, Bushueva managed large- and mid-cap model portfolios as well as blue chip portfolios in Russia and Kazakhstan, regularly outperforming the benchmark (MSCI Russia and RTS index) by wide margins.
Bushueva also participated in a number of IPOs, including Rosneft, United Co Rusal, Akron, Belon, RBC, ARMADA and Lenenergo, and was in charge of strategic council for businesses on the Russian and Kazakhstan stock markets.
Bushueva says: ‘I am delighted to become a managing director of Arbat Capital, in charge of this new Fund. I believe this is a unique opportunity. By combining my deep knowledge of the Russian market and Arbat Capital’s proven global expertise, I am confident that we will be able to deliver superior results.”
The New Kremlin Fund is expected to be registered by August 2011, with the aim of raising USD100-150 million, with USD50 million invested in the first round by a group of Russian investors.
“We at Arbat Capital are excited about the huge potential of the Fund,” says Alexey Golubovich, Chairman of the Board of Directors of Arbat Capital. “We propose to keep the Fund small as this will allow for greater flexibility in making investment decisions".
Arbat Capital already has a long history of successful investments in a wide range of sectors, both globally and in the emerging markets, with consulting current funds including Arbat Global Fixed Income Fund and Arbat Global Mineral Resources Fund.
Bushueva says: “We believe that Russian stocks are still undervalued, and the upcoming elections will increase their value, bringing greater transparency and stability to Russia. However, to select the right investments, it is crucial to have a good knowledge and understanding of the Russian companies and the political situation in the country. Our team can provide this expertise.”