 | Brummer to set up new Bangladesh stocks fund
03 December, 2009
Brummer & Partners, the largest Scandinavian hedge-fund manager, plans to set up a fund to buy Bangladeshi stocks, betting the south Asian nation will attract investors seeking the world's next low-cost labour hub, reports Bloomberg.
The fund "should not be larger than $100 million" as only about a third of Bangladeshi companies' outstanding shares are publicly traded, said Patrik Brummer, founder of the Stockholm- based company, whose assets are at their peak of about $7 billion. The fund will be formed within the next three months, he said.
The nation of 162 million people, equivalent to about half of the population of the U.S., may join the ranks of the fastest-growing economies in the region as it benefits from its geographical proximity to India and China and low labor costs. The economy, which expanded 5.9 percent in the year to June, was shielded from the financial crisis because of its "limited integration" in the global economy, according to the World Bank.
"If you believe in labor arbitrage as a true trend, that will benefit Bangladesh," Brummer, 60, said in an interview at the three-year-old Westin Dhaka hotel. "The predictability for this country is much higher than most countries that I know of; it is largely uncorrelated to the world economy."
Release link:http://www.thefinancialexpress-bd.com/more.php?news_id=85767
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