Special Situations Start-up Hedge Fund is Looking for Seed Investor

Opportunity Snapshot

Investment Opportunity

Our strategy is value investing / special situations. We are looking for a seed investor to invest 5-10mn USD and get part of the business.

We are a start-up hedge fund, investing our own money on the South-Eastern European stock markets. Business is easily scalable. Partners have both 5 years experience in London.

Brief introduction:

Both partners grew up in Bulgaria and later went on to study business at universities in Austria and Germany.
Our professional careers started in London:
In the UK, we spent a total of 5 years - one working for Goldman Sachs and Rothschild, and the other - for Lehman Brothers and later Nomura, while working, we started investing our own money on the Bulgarian stock market in 2006 and did so until end of 2007 when we successfully exited feeling the market was getting ahead of itself. It was in 2008 when we discussed quitting our jobs in London and moving back to our homeland Bulgaria to invest full time. We used our time in London to decide how we wanted to do it while watching the collapsing market in 2008. We left London in the late summer of 2009 and started a month long trip around Western and Eastern Europe. We visited brokers, companies and some private investors in many countries to get a feel about the markets. Back in Sofia, we rented a small office in Q1 2010 and started investing.

What we invest in?

After some retrospection and based on our experience, we felt most comfortable with deep value and special situations investing. We are not short-term traders. We do very thorough fundamental analysis and take medium- and longer-term positions. We have defined our investment process and we feel this gives us a better chance to understand and mitigate the risks upfront. We believe that if our process is correct, the result will eventually be positive. We have so far invested in Bulgaria, Romania and Turkey and are in the process of expanding to several other markets in the Balkan region. Our goal is to broaden our scope to about 9 or 10 countries in Eastern Europe, predominantly in South-Eastern Europe (from Slovenia to Turkey and north to Ukraine). We feel this is our competitive advantage and we see solid potential for investing in the region. We do our own macroeconomic and political analysis but we are not investing top-down. We do it to understand the macro risks and hedge our portfolio accordingly. We feel this (hedging, rather than investing top down) makes more sense and has worked better given the history of the region. We look at local market performance only indicatively as we don’t aim for relative performance.
Our sole focus is total absolute after-tax return on an annualized basis over the long-term.

Please refer to the attached presentation for detailed information and also www.blackpeak.eu

Investors can contact us on Merar for more information.

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