Saray Capital: Focused and Disciplined Value Investors from the Lands of Arabia
The following is a statement from Saray Capital
Approaching the last quarter of 2016 – we are faced with two general market conditions in our two geographical focus areas – the Middle East North Africa (MENA) markets and the developed markets.
The MENA markets fell significantly in recent months as result of
factors ranging from political uncertainties or in the case of the Gulf
Cooperation Council countries the severe oil price crash.
These macro issues started to affect the wider economy and the consumer as the GCC countries switched from having budget surpluses to budget deficits and from overspending to budget cuts severely slowing economic activity and drying up liquidity in the markets.
Almost a perfect storm of pessimism appeared overwhelming individuals corporates and financial institutions.
The negative spiral continued as fear drove people to take sometimes emotional decisions to sell their most liquid investments – stocks - and convert their assets to the psychological safety of cash ,meanwhile margin calls pushed liquidations of portfolios causing further lowering of share prices as exemplified by the regional indexes losing close to 39% of their value since the fourth quarter of 2014.
More specifically, Saudi Arabia stocks exhibited a more drastic decline as the Tadwul index lost more than half of its value from the fourth quarter of 2014. Although further declines could occur and contrary to the dominating negative sentiment, we believe that current prices provide good risk adjusted low valuations enabling us to purchase parts of leading businesses in Saudi and the region that will survive the current downturn and potentially thrive thereafter due to the fact that these companies possess superior financial standings, solid market positions, as well as good management.
Furthermore, an added critical reason that is giving us comfort to invest in these uncertain times selectively in the MENA region stems from our belief that oil will still be an important commodity and source of fuel for decades to come and the exaggerated story of the end of oil or oversupply of oil is not to be believed fully especially in the short to medium term.
On the contrary, in the developed markets the situation is quite different. As a result of the massive programs to infuse liquidity into the system, historical all time highs prices of bonds and equities were reached creating unhealthy environments exemplified by assets in the trillions of dollars paying owners a negative yield. This situation has lead us unfortunately to find no value in some of the largest markets such as the US and Germany, currently. However, other parts of the developed markets are experiencing turbulence and volatility from the expected continued slowdown of China and Brexit complications - creating certain value opportunities.
At Saray Capital we believe that emotions dominate in the short term however facts rule over the long term. Coming from a region that has the oldest recorded commercial transactions in history dating more than five thousand years ago, we believe that economic and political cycles are a natural phenomenon and to be expected and to be prepared for by always being disciplined, diversified across geographies and asset classes, and under-leveraged.
Moreover, the founders of Saray Capital due to their experience as well as merchant families heritage practice holding concentrated number of well researched investments for the long term. It is a private equity and merchant families approach to investing in the public markets.
We believe that in order to safeguard and grow capital for our investors it is exactly at such volatile times that we step in to purchase highly selected, high barrier to entry, financially healthy, high quality companies sometimes offered at historical low valuations in the regions that we currently find value in parts of developed Asia, the UK, Europe, and in the MENA markets mainly the GCC and Turkey.
Finally, we at Saray believe in and practice true and full alignment by investing our own capital alongside our investors. At Saray Capital, we are compensated purely on a success fee basis and hence only benefit when our investors benefit first.
Magued Hanna, Tel: +97152 612 9993
Om Business Wire
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
Edgewater Networks Announces Event Sponsorship of BroadSoft Connections 201720.10.2017 21:00 | Pressemelding
Edgewater Networks, Inc., the industry leader in Network Edge Orchestration, announced today that it is an event sponsor of the BroadSoft Connections 2017 user conference, which takes place October 22-25 at the JW Marriott Phoenix Desert Ridge Resort & Spa in Phoenix, AZ. During the event, Edgewater Networks will feature demonstrations of the latest end-to-end network interoperability capabilities, including Zero Touch Provisioning, UC Analytics from the core to the endpoint, SD-WAN optimized for BroadSoft, and much more. Continuing a long-standing partnership with BroadSoft, Edgewater Networks has completed another level of BroadCloud certification, this time for local survivability which is critical for business continuity for SMB and Enterprise customers. BroadSoft’s PacketSmart is available on all EdgeMarc Intelligent Edges. All elements of the Network Edge Orchestration are
More than 70 Companies to Showcase Top Tech at CES Unveiled Paris20.10.2017 15:08 | Pressemelding
The Consumer Technology Association (CTA) today announced that more than 70 exhibitors will showcase their latest innovations at the now sold-out fifth annual CES Unveiled Paris The event will focus on the Internet of Things (IoT), connectivity and smart cities, and draw more than 600 attendees. CES Unveiled Paris will run from 2-7:30 PM on Tuesday, October 24, 2017 at the Palais Brongniart. Regional technology companies, top-tier media outlets, buyers and key industry influencers will come together at CES Unveiled Paris to get a direct look at the latest industry developments. The day kicks off with a CES news conference and CTA market trends presentation. Conference programming is followed by a tabletop exhibition & networking reception. Curated exhibitors will be there to showcase top tech from robotics and audio to smart home and augmented and virtual reality. Notable
Westinghouse Receives Regulatory Approval for Analysis Methodologies20.10.2017 12:15 | Pressemelding
Westinghouse Electric Company today announced that it has received approval from the U.S. Nuclear Regulatory Commission (NRC) for two new important analysis methodologies that will be used to upgrade Westinghouse- and Combustion Engineering-based nuclear steam supply system (NSSS) safety analyses. The approvals granted are for the new FULL SPECTRUMTM Loss of Coolant Accident (FSLOCATM) methodology and the Performance Analysis and Design Model software code update, PAD5. FSLOCA is capable of improved modeling of the transient response in a pressurized water reactor to the full spectrum of LOCA break sizes that could occur, and PAD5 is the next generation of the Westinghouse fuel rod design performance code. “These codes were developed to work in concert with each other to maximize analytical margin for nuclear utilities,” said Michele DeWitt, senior vice preside
Gilead Announces Multiple Scientific Presentations Demonstrating High Cure Rates in Difficult-to-Cure HCV Patients and Improved Long-Term Bone and Renal Safety of Vemlidy® in HBV Patients Switched from Viread®20.10.2017 12:03 | Pressemelding
Gilead Sciences, Inc. (NASDAQ: GILD) today announced results from Phase 2 and Phase 3 studies of its approved medicines for chronic hepatitis C virus (HCV) and hepatitis B virus (HBV) infection, adding to the body of evidence supporting Gilead’s viral hepatitis therapies in diverse patient populations. These and other data from more than 25 abstracts will be presented this week at The Liver Meeting® 2017, which begins today in Washington, D.C. Positive results from studies of Harvoni® (ledipasvir 90mg/sofosbuvir 400mg) in HCV-infected patients with severe renal impairment, Epclusa® (sofosbuvir 400mg/velpatasvir 100mg) in HCV-infected liver transplant recipients and Vosevi® (sofosbuvir 400mg/velpatasvir 100mg/voxilaprevir 100mg) in NS5A-inhibitor experienced HCV-infected patients will be presented during poster sessions on October 21 and October 22. In addition, updated results f
Schlumberger Announces Third-Quarter 2017 Results20.10.2017 11:00 | Pressemelding
Schlumberger Limited (NYSE:SLB) today reported results for the third quarter of 2017. (Stated in millions, except per share amounts) Three Months Ended Change Sept. 30, 2017 Jun. 30, 2017 Sept. 30, 2016 Sequential Year-on-year
SP3H Announces That It Has Obtained a €1.2 Million European Union Grant for Its Intelligent and Clean Vehicle (VIP) Project20.10.2017 10:47 | Pressemelding
SP3H is proud to announce joining the very select circle of the 10 French winners of the H2020 SME Instrument Phase 2 program since 2014. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20171020005325/en/ Last summer VIP received the very prestigious SME instrument phase 2 H2020 label in the "transport & smart cities mobility" category. With an overall budget of € 1.7 million, VIP is subsidized by the European Union at a rate of 70% or €1.2 million. The framework contract was officially signed early October. VIP is the pre-industrialization program for Fuelbox sensors, the world's first miniaturized scanner capable of analyzing the quality of fuels on board vehicles. The heart of the program remains closely linked to the reduction of CO2 and pollutant emissions from vehicle
I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.Besøk vårt presserom