Mark Krombas, who joined Charlemagne last year, manages the Magna Mena fund. He will typically hold between 30 and 40 stocks.
The Magna Mena fund has about 50% of its portfolio invested in Saudi Arabia. Between 10% and 15% is invested in Qatar and the United Arab Emirates respectively, and 5% in Kuwait and Oman respectively.
About 90% of the allocation will fall within the Gulf Co-operation Council, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Charlemagne expects those countries to benefit from high oil prices and large current account surpluses and net savings relative to GDP. (article continues below)
Krombas also considers exposure to Egypt and other countries that recently experienced civil unrest, such as Bahrain, Jordan, Lybia and Tunisia. “We will watch events in Egypt and North Africa closely as we expect market inefficiencies to create good opportunities,” he says.
Krombas will apply a bottom-stock selection investment process and will pay close attention to the on-going events in these nations being hit by protests in order to determine what opportunities they might yield.