Russian capital markets: Full of value or close to collapse?

NEVER LET IT be said that investors in Russia are short of a memorable turn of phrase when it comes to describing one of the most eventful markets. "The last few months have been like a Marxist’s wet dream – the rich have been absolutely decimated," says James Fenkner, managing director and founder of Red Star Asset Management. He adds: "The more money you had at the start of this crisis, the less you have now." Red Star is one of a legion of small hedge funds that have found the past months a traumatic experience as they’ve watched asset prices that have taken years to increase seemingly evaporate into the ether as investors have pushed the panic button and exited the Russian capital markets.