The rate of return of 17%, which focused on investments in Russian securities hedge funds reached in March, the highest since August 2000, according to data cited by Bloomberg. The MICEX index in March rose only 1.7%.
Bloomberg notes that the yield of hedge funds that specialize in investments in emerging markets as a whole, amounted in March to 7.5%.
The profitable growth focusing on investments in Russian assets hedge funds comes amid strengthening of the ruble and higher oil prices. The Russian currency after the fall in January to a historic low in 85,99 rubles per dollar has appreciated by 23%, demonstrating the best growth performance among emerging market currencies. The price of a barrel of Brent crude oil since mid-January increased from $28,21 $43,36 to April 11 (the maximum value since the beginning of December).
In March of speculators betting on ruble appreciation against the dollar has reached a three year low. At the end of March the number of bets on the rise of oil prices — the main driver of growth in the Russian market peaked in 2014.
Despite the optimism of hedge funds, Russia continues to demonstrate a weak macroeconomic indicators. The country’s GDP has declined each quarter starting with March 2015, according to forecasts, will not start growing until the beginning of 2017. Analysts surveyed by Bloomberg predict that by the end of the year the ruble against the dollar to decline by 6%.