East Capital Explorer’s business concept is to maximize risk-adjusted shareholder return by offering our shareholders a liquid exposure to a unique investment portfolio of unlisted and listed companies in Eastern Europe.
The Eastern European region is expected to grow faster than Western Europe. The Baltic Region and South East Europe have a mid-term expected growth of around 3 percent, which is twice as high as in the Eurozone. Russia is expected to remain below its growth potential in the mid-term but can surprise on the upside if structural reforms are implemented and the sentiment among investors improve
The engine of the growth in the region is the domestic consumption which in turn is driven by the continued increasing disposable income in the region. Our target sectors are therefore Retail, Consumer goods, Financials and Real Estate
We focus on companies with either stable cashflow, strong growth potential or high potential for revaluation (special situations). By adding these types of investments, we build a balanced portfolio combining different types of drivers as well as different types of risks. We are primarily focusing on cash-flow and growth investments, and expect investments in the special situations category to decrease going forward.
As a long term investor we are able to time our investments and divestments based on what we assess to be the best timing and are less sensitive to short-term turbulence in the market. Our active investment style means that we have a value-added approach, where we focus on adding competence and know-how to the companies we invest in.