IAM Carrhae Capital UCITS

Carrhae Capital was funded in 2011 by Ali Akay (ex SAC, HBK) and currently manages around $800m across two distinct strategies: a long/short fund launched in 2011 and a long-only fund launched in 2014 (c. $400m), with the flagship long/short strategy launched in UCITS format at the end of March 2022. The fund is an equity low net strategy focused on fundamental stock selection in emerging markets, with the portfolio highly risk managed with tight constraints in country, factor and sector risk. The fund’s bottom-up investment process is based on deep industry and country level work. At the country level, the team scan for significant changes in financial positions, fiscal and monetary policy, and politics, with a core macro focus on analysing the banking system and how it distributes capital. At the industry level, understanding industry trends and their impact on companies is key to generate consistent medium-term alpha. Cross border industry analysis is one of the ways the team use to identify industry patterns and cycles. At the company level, after the team have identified the perceived winners and losers in any given industry, the next step is the in-depth fundamental bottom-up analysis with the team scrutinising stakeholders alignment, management teams, business strategy, etc to identify perceived corporate out/underperformers in earnings delta vs. the market. The portfolio typically includes around 40-80 ideas (20-40 longs and 20-40 shorts) with a decent level of concentration. Net exposure typically ranges between +30% to 10% vs. 150% to 250% gross.