New York (HedgeCo.net) – Steffen Gruschka’s Emerging Europe investment boutique has launched the Ukraine-dedicated L/S equity fund with seed capital from European Institutional Investors. The Euro 2012 gives Ukraine an immense opportunity to boost its international profile and raise investors’ awareness of the country that Mr. Gruschka has been investing in for more than a decade already and that trades at a low single digit p/e.
Ukraine is the largest country in Europe and has a unique geopolitical advantage serving a bridge between Europe and Asia. The potential EU-Ukraine association and free trade area agreement will enhance political and economic integration of Ukraine with the EU, its largest trade partner, and will create a strong momentum for economic and political reforms improving the country’s business and investment climate.
Known as a breadbasket of Europe, Ukraine accounts for a quarter of Europe’s arable land and is endowed with a third of the world’s reserves of the most fertile black earth. It is also strategically important for the whole world as a source for future agricultural production growth as Ukraine is one of the few countries that still has potential to significantly increase its agricultural production, up to four-fold in the longer term. As global food shortages become an increasing concern, food, rather than energy resources, becomes of paramount importance which makes Ukrainian agricultural sector an extremely attractive investment opportunity.
Together with the country’s strategic location, high-growth agriculture and heavy industry sectors, Ukraine’s bright future stems from its highly educated population. Ukraine has a 100% literacy rate and is renowned for its academic and scientific excellence, particularly in math and engineering, which is nourishing the country’s fast growing technology and innovation sector that is set to become an important part of the domestic economy.
SG Alpha has already generated impressive alpha in its Ukrainian investments within the SG Alpha Emerging Europe Fund and deems that now, when the Ukrainian equity market is trading at one of its highest historical discounts, is the best entry point to create a Ukraine-dedicated fund to fully participate in the country’s unrivalled growth opportunity and further leverage on the investment team’s unique expertise in this market.
SG Alpha will market the SG Alpha Ukraine Fund to Institutional Investors in Europe and worldwide.
About SG Alpha:
SG Alpha was established in the autumn of 2009 and launched its first fund, the SG Alpha Emerging Europe Fund, in December 2009. Steffen Gruschka, founder and manager of the Fund, is one of the most experienced Eastern European managers with a track record of 14 years. Mr. Gruschka was previously responsible for several of Deutsche Bank’s Long-only Eastern European funds which grew to over USD 5 billion in AuM during his management. SG Alpha’s investment process is based on fundamental equity research and active investing.