Pharos Fund Russian Hedge Fund Tracker Notes

Pharos Fund

Pharos Financial Group - Hedge Funds

Pharos FundThe following piece on Pharos Fund is being published as part of our daily effort to track hedge fund events in the industry. To review other hedge fund related announcements please see our Hedge Fund Tracker Tool.

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Resource #1: (11.18.08) oscow-based hedge fund Pharos Financial Group is opening an office in sunnier climes. The Russia-focused hedge fund manager has been licensed to operate in Dubai and is opening an office at the Arab Emirate’s Dubai International Financial Centre.

The US$130 million firm, which was seeded by Soros Fund Management in 1997, is the first Russia-focused hedge fund manager to win approval from the Dubai Financial Services Authority. Founder Peter Halloran pointed to a growing appetite for Russia-focused funds among Persian Gulf Coast investors as a motivation for the new office.

“Our move to DIFC was an easy strategic decision given our expectation that the need for quality asset management in the GCC will grow substantially over the next decade,” he said in a statement. “Pharos intends to fill the niche as the market leader in emerging markets fund management. Already we have seen tremendous appetite from GCC investors for our Russian-focused investment opportunities.” Source

Additional Resources

The following is a list of resources and information that is publicly available about Pharas Fund.
  • Pharos fund portfolio.
  • Whitepaper on Pharos Fund. The White paper explains how the pharos fund manager makes decisions.
  • Every letter to all investors for 2008, from the Pharos Fund and Gas Fund.
  • Excel spreadsheet of every Pharos funds performance. So far, 2008 has a negative return on every fund.
  • Excel spreadsheet breakdown of Sector allocations for the pharos fund.
  • Excel spreadsheet breakdown of Sector allocations for the Gas fund. Pretty self-explanatory, the fund invests in options and futures in oil and natural gas.
  • Article about how there will be an increasing demand for natural gas.
  • Excel spreadsheet of Pharos small cap fund. The small cap fund uses Russia’s building economy and uses illiquid shares to make a profit.
  • Daily market comment and performance of all three funds. The Political Environment is fragile, which will create volatility in the market overall, which is good for each hedge fund.
  • Article about how all Pharos funds are down. The MSCI Russia Index is down 32.4% due to “a reversal of fortune from the market's earlier outperformance.”
  • The Georgia conflict severely hurt the Russian economy because investors pulled out more than $7 billion. Russian may not be allowed to host the next Olympics and the U.S. is restricting Visas for Russians.
  • Pharos said that the Russian economy is stable, but foreign investors insecurity will create short term-volatility.
  • Name of this article pretty much sums it up- “Pharos, TPG to acquire American Beacon Advisors for $480m.”
  • Interview with Peter Halloran. Eastern European (Russian affiliated) countries are rapidly growing faster than other developing nations.
  • Article about the government planning to increase domestic gas prices by 25-40 per cent, over the next three years.
  • A blog post that has a about positive outlook for every Pharos fund, for the month of June.
  • Article about how hurricane Gustav may increase gas to $5 a gallon. This may effect pharos gas fund.
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