Pacific Investment Management Co (Pimco), one of the leading investment companies, turned bullish on the Russian rapidly depreciating stocks deciding to buy them, Bloomberg says citing the company’s sources.
Masha Gordon, mananger at Pimco, explained that the company took advantage of the market volatility to increase position in quality but undervalued shares. Pimco did not name the stocks purchased. Meanwhile, the U.S. investors still keep their investments in Alrosa, Bashneft, and oilfield services provider Eurasia Drilling.
Pimco joined the market in March when price-to-earnings plummeted to the multiyear low of 4.65 to 1. However, the ratio improved by May considerably – to 5.3 to 1. Nevertheless, it is still well below compared to developing markets where the ratio is 10.8 to 1. Three-month volatility of the MMCI index reached 29.7% by the end of May, almost three times more than the level of the MSCI Emerging Markets.
Pimco heads the first largest share investment fund in the world. By the end of 2013, the total volume of the assets managed by the company and its daughter companies was 1.91 trillion U.S. dollars.
