Pimco Using Ukraine Turmoil to Buy Cheap Russian Stocks - Bloomberg:
"When some investors were fleeing Russian stocks as President Vladimir Putin moved to annex Crimea, Pacific Investment Management Co. (PEQWX) turned bullish.
The Newport Beach, California-based investment manager has been buying Russian equities amid a decline which, at the height of the conflict with Ukraine, pushed the average dividend yield for the benchmark Micex Index (INDEXCF) above its estimated 12-month price-to-earnings ratio for the first time since at least 2009.
“Over the past three months, we have used market volatility to increase or initiate positions in high-quality stocks that were sold down to distressed levels,” Masha Gordon, who oversees more than $2.5 billion in assets as the London-based head of emerging-market equities at Pimco, wrote in an e-mail yesterday.
The Micex’s dividend yield on March 14, the last trading day before Crimeans voted to join Russia, was 4.59 percent, while the gauge traded at 4.56 times estimated earnings, data compiled by Bloomberg show. Valuations slumping below payout levels can signal a buying opportunity to investors.
“The market’s dividend yield exceeded its” price-to-earnings ratio, Gordon said. “This is very unusual.”"
'via Blog this'
No comments:
Post a Comment