Prosperity believes that accessing high-quality management is extremely important in achieving investment success in Russia and the FSU. There are substantial opportunities in these dynamic and quickly evolving markets and it is Prosperity’s view that strong and capable management teams are most able to benefit from these characteristics, whilst also minimising the risk of corporate governance malfeasance and breaches.
As such, Prosperity places considerable emphasis and importance on meetings with the company’s management, executives, majority shareholders and other stakeholders throughout the investment consideration, inception, monitoring and exit process.
Triangulation (i.e. speaking with company’s external stakeholders, such as suppliers, distributors, competitors, etc.) is considered an important part of the process, allowing Prosperity – in conjunction with our considerable experience of investing in Russia and the FSU since 1996 and our long historical knowledge of many companies – to build strong convictions in our views and to take significantly contrarian stances to the general market and sell-side analysts with considered and monitored comfort.
Members of Prosperity’s investment team conduct over 500 company meetings and engagements each year. It is considered that on average:
65% of such meetings take place at Prosperity’s or the respective company’s offices
10% at conferences
5% by tele/videophone.
Access to senior corporate personnel and management is generally considered to be very good in Russia and the Former Soviet Union and provides us with the opportunity to develop a robust understanding of the company and its practices, in conjunction with other investment research work.