Leading financial analysts

When considering which investment companies to use, many people like to follow individual fund managers and analysts. Knowing that there is a track record of success can make a real difference. Although it may not be a guarantee of future performance, it can certainly be helpful in ensuring that you are investing your money, without having that sense that you are stepping into the great unknown.

But how can you go about producing the best results on a consistent basis, when it comes to looking at getting maximum concerns at a risk level that you are happy with. Sticking with those fund managers who produce strong results time and again can certainly work well.

When considering the success of Nevsky Capital, to take an obvious example within the marketplace, there is no doubt that many investors would associate that record of success with the individual input that comes from Nick Barnes and Martin Taylor.

Martin Taylor & Nick Barnes

Martin Taylor and Nick Barnes have worked hard to build up a dedicated following of investors who trust their judgement and ability to make reliable returns on an ongoing basis.

Nevsky Capital

How might we describe the key to their success? Inevitably, investors tend to follow the data and the numbers. A great reputation is built, as a result, on a solid performance that can be measured via particularly visible metrics. Without that sort of information, it would simply be impossible to imagine investors relying on key individuals in this way.

Nevsky's Nick Barnes

For Nick Barnes, there will certainly be interest in continuing to maintain those excellent standards that have been set over a period of many years. It’s only through dedication and consistency that investors can be retained. There is no temptation to look elsewhere, as long as confidence is in place that performance will continue to meet the high expectations that have been set.

It’s natural that other analysts and professionals should wish to replicate what has been achieved by Nick Barnes and Martin Taylor at Nevsky Capital. But will they be able to scale the heights in the same way? One thing is certain: many will continue to follow in the footsteps of those who lead the way. They will do so because they hope to reap the rewards.

Eastern European IPO trends

The relative state of Initial Public Offering (IPO) transactions is seen by some analysts as presenting a measure of how well individual markets are performing. Are businesses keen to float on the stock market? Do investors feel confident enough to plunge their own capital into such businesses?

It has not gone unnoticed that IPO levels have dropped significantly in many Eastern European markets in recent months. From the Ukraine to the Czech Republic, it seems like there is a waning appetite for such flotations. What lies behind the trend?

Wider economic uncertainties are certainly not helpful in this context. While investors fret about the future direction of countries and the region as a whole, they may well feel that this is not be best time to invest. Conditions are unlikely to be conducive to strong performance from individual entrepreneurs either. There may be an element here of new businesses struggling to emerge from the shadows.

A global economy means that IPOs aren’t just about local investors, of course. For those examining options on a broad scale, Eastern European transactions may represent too much of a risk right now. Although there’s always that balance between risk and reward, many evidently feel that the scales have been tipped too far in one direction here.

The state of the Russian economy continues to give cause for concern and sanctions are proving limiting, in terms of economic growth. There is also evidence that the impact here is not only limited to Russia: perhaps unsurprisingly, there are knock-on effects for trading partners elsewhere, particularly within Eastern Europe.

At present, equity valuations tend to be low. Some companies will have responded to this situation by looking to delay IPOs, believing that valuations will increase once the current circumstances subside. There are certainly many anxious glances in the direction of the Ukraine at the moment, with senior managers in many businesses hoping to see greater stability in the medium-term.

Could a few large IPOs trigger others to follow suit? The recent flotation of Wizz Air, the Hungarian budget airline, has given some cause for optimism. Could it represent a sign of confidence returning to the markets? It’s probably too early to tell, but there seems little chance of a rapid recovery in IPO levels for the most part.

Consideration also needs to be given to the privatisation process that has been ongoing in some countries. Taking Poland as an obvious example, recent years have seen Polish governments looking to privatise on a large scale. There may simply be little left to privatise, reducing the potential for this as a source of IPOs. The same is true in Romania, where it’s been noted that the sale of assets has certainly reduced in recent months.

What does the future hold? That’s always the question that most investors want to know the answer to. Looking into a crystal ball, it would appear that the most likely answer here is that the uncertainty that surrounds the economies of the region means that there doesn’t seem to be much chance of IPO levels increasing at a significant rate during the course of the coming months. If the Ukraine situation, in particular, starts to settle down, then that may well present cause for economic optimism.