Rothschild Investment Corporation increased its portfolio of American Depositary Receipts of Russian Gazprom. So, the American financial organization under the guidance of Rothschild’s heirs boosted its Gazprom investments sevenfold. Such a decision has been already approved as the corporation filed with the U.S. Securities and Exchange Commission.
Experts associate such a step with the large-scale geopolitical crisis shaking Ukraine and Europe as a whole. As of December 31, 2013 the Rothschilds owned Gazprom securities worth $241,000, in April 2014, the portfolio increased to $1.7 million. In December, the ADRs of the Russian gas monopoly were $8.65 apiece, while by early April the securities fell to $7.77. Moreover, during the first quarter Gazprom ADRs were trading even lower.
The drop in value was rather predictable under the current circumstances. Ukraine, the West, sanctions, and uneasy external relationships – all that put pressure on the securities of Russian companies. To date, these equities are the cheapest in the world, and, as a result, the most affordable. The price-to-earnings ratio of the Russian stock market is about 6:1, while the normal level is of 12:1. And it is only the beginning. Rothschild & Company, which was founded in 1908 by Monroe Rothschild and his brother-in-law Samuel Karger, is considered to be a boutique investment firm as it offers its services to prosperous Americans.
