Hermitage Capital
An investment fund focused on Russia, founded by Bill Browder in the mid-1990s.
Where Hermitage Capital comes up1 episode or test
- 1Ask refinery CFOHow many shares are outstanding?
- 2Learn of preferred classNo one else had asked
- 3Spot the mispricing10% guaranteed dividend, 90% cheaper
- 4Buy the preferred sharesThe fund made a huge profit
From Bill Browder, Hermitage Capital founder
What was said about Hermitage Capital
Ask the obvious question experts skip: it found Hermitage's preferred-share bet. Bill Browder asked a Russian refinery CFO how many shares were outstanding and learned of a preferred class paying a guaranteed 10% dividend while trading 90% cheaper than ordinary shares. The fund made a huge profit on them.
No one else had asked. Browder says experts get lost in too many details, while "there was just something so blatant staring in the face", and that talking to people uncovers most of what is hidden.
A small Russia fund turned $25 million into an 800% return. Browder left Salomon Brothers in the mid-1990s, raised his own fund to invest in Russia, started it with $25 million and made 800% on the money.
The run ended in 2005 when, on his 261st trip, he was detained at Moscow's Sheremetyevo airport and deported to London. The lawyer he hired to find out why, Sergei Magnitsky, was later killed in Russian custody, and Browder left investing to campaign full time.
How to Write a Book People Can’t Put Down — Bill Browder
The small Russian fund started with $25 million and made 800% on the money. Browder asked a refinery CFO about preferred shares, which paid a guaranteed 10% dividend and traded 90% cheaper than ordinary shares, and made a huge profit.
Ask the obvious question experts skip: it found Hermitage's preferred-share bet. Bill Browder asked a Russian refinery CFO how many shares were outstanding and learned of a preferred class paying a guaranteed 10% dividend while trading 90% cheaper than ordinary shares. The fund made a huge profit on them.
No one else had asked. Browder says experts get lost in too many details, while "there was just something so blatant staring in the face", and that talking to people uncovers most of what is hidden.
A small Russia fund turned $25 million into an 800% return. Browder left Salomon Brothers in the mid-1990s, raised his own fund to invest in Russia, started it with $25 million and made 800% on the money.
The run ended in 2005 when, on his 261st trip, he was detained at Moscow's Sheremetyevo airport and deported to London. The lawyer he hired to find out why, Sergei Magnitsky, was later killed in Russian custody, and Browder left investing to campaign full time.
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