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  • Sturgeon Capital LLP: Managing Risk, Responsibility and Opportunity in Frontier and Emerging Markets

     

    Clemente Cappello from Sturgeon Capital LLP, a sponsor company at the marcus evans Private Wealth Management APAC Summit 2011, on maintaining an investment edge through innovation and independence.

    Interview with: Clemente Cappello, Chief Investment Officer, Sturgeon Capital LLP


    FOR IMMEDIATE RELEASE

    As investors look for growth and the next generation of emerging markets, frontier markets will attract significant inflows of capital, says Clemente Cappello, Chief Investment Officer, Sturgeon Capital LLP.

    From a sponsor company at the upcoming marcus evans Private Wealth Management APAC Summit 2011, in Macao, China, 31 October - 2 November, Cappello shares his views on the risk and rewards for investors looking to explore opportunities in frontier and emerging markets.

    What are the risks and rewards of investing in frontier and emerging markets today?

    Clemente Cappello: One of the main perceived frontier and emerging market risks is that investor perception and capital flows drive short term market fluctuations.

    This volatility is defined as risk but I would disagree with that. The most important thing to us is the fundamentals on both a macro and micro level. This will ultimately drive investment performance. In addition, volatility and market inefficiencies present an abundance of opportunities for an active, research driven fund.

    What is your view of the Basel III agreement in relation to long term investment perspectives?

    Clemente Cappello: From a regulatory perspective, authorities had two options: make banks stronger to reduce systemic risk and rebuild lending confidence, or regulate to encourage banks to lend to aid the economic recovery. Clearly the Basel III Agreement shows they took the option of regulating to make banks more robust. In the short term this inevitably means that they will be less prone to lend.

    In the longer term, the consequence will be that banks will take on less risk. This results in a stable, sustainable banking system but does not help in terms of growth needed in the short term.

    In relation to frontier and emerging markets such as Central Asia, tighter lending policies from banks mean that well informed investors with capital to deploy can demand a significant capital premium for providing investment for companies which already provided excellent opportunities for growth being located in high growth, resource rich economies.

    How do investment managers continue to generate investment ideas that are independent and innovative?

    Clemente Cappello: There are a number of different ways that we try to keep Sturgeon Capital both independent and innovative in our investment idea generation and decision making processes.

    Managers can separate themselves from the mainstream investment community to avoid being intellectually caught up with a herd movement in market sentiment, and retain a balanced perspective in their specific area of investment focus. We recently moved offices from Mayfair to a less finance-orientated part of London partly with a contrarian outlook in mind.

    By conducting their own independent research by visiting company’s and reviewing plant, asset, and production facilities in-country, managers no longer have to rely on third party data and research providers. I spend around 50 per cent of my time travelling in Central Asia as part of our in-house investment research processes. In this directly responsible role in performing the research function, we have been able to uncover less-visible investment opportunities (and also avoided potential losses) that we may not have been aware of had we outsourced this to a third party. This type of enhanced research and due diligence provides a much higher level of comfort and conviction when constructing the portfolio for the fund.

    A combination of an entrepreneurial and also a contrarian thought process whilst not essential for a manager to be successful, can prove to be invaluable in maintaining an investment edge through innovation and independence of thought and ownership.

    What is the outlook for alternative investments?

    Clemente Cappello: As investors look for real growth and for the next generation of emerging markets, frontier markets such as Central Asia will attract significant inflows of capital.

    Those who work with managers that have an established track record of successfully navigating these markets will benefit from access to a valuable information edge.


    Contact:
    Stacey Melvin
    Journalist
    marcus evans, Summits Division
    Tel: + 357 22 849 400
    Email:
    press@marcusevanscy.com

    Private Wealth Management APAC Summit 2011

    This unique forum will take place at The Venetian Macao, Macao, China, 31 October - 2 November, 2011. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes visionary presentations and interactive forums on family office practice management, succession planning, risk control and investment management. 

    For more information please send an email to info@marcusevanscy.com or visit the event website at www.pwmsummit.com

    marcus evans group - investment sector portal

    Complementing our summit format, the Investments Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Lend an ear to fellow experts and live news from our events on our LinkedIn and Twitter accounts!

     

     

    Please note that the summit is a closed business event and the number of participants strictly limited.

    About Sturgeon Capital

    Sturgeon Capital is an independent alternative investment manager specializing in frontier and emerging markets. Sturgeon Capital manages the Sturgeon Central Asia fund, a multi-strategy investment fund focused on Central Asia and the surrounding region.  The Sturgeon Capital management team have been investing in the region since 2005 and is made up of industry professionals with diverse professional background of regional and industry specific experience.

    www.sturgeoncapital.com

    About marcus evans Summits

    marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit www.marcusevans.com


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