29th Feb 2016 10:59
LONDON (Alliance News) - Craven House Capital PLC on Monday said there is a "once in thirty-year opportunity" to invest in "good companies" in the wake of capital outflows from emerging markets.
"Our view is that many emerging economies have experienced an overdue and well deserved correction. Institutional capital spent the last decade chasing emerging market growth and yield with free money provided by developed world policy makers. Over a decade billions flooded into markets ill equipped to withstand the onslaught of hot capital while the commodity bull market raged on," Chairman Mark Pajak said.
"These same economies were even less equipped to handle the capital flight, which withdrew from the market much faster than it entered. Everyone from finance ministers to shopkeepers have been caught up in the riptide of capital flight. We believe this has created a once in thirty-year opportunity to invest in good companies," Pajak added.
The chairman's commentary came as Craven House said its net asset value fell to GBP4.6 million on November 30, from GBP4.7 million on May 31, the period being the first half to its financial year.
Shares in Craven House were untraded at 0.805 pence on Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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