Godvig Capital Management's hedge fund, The Babylon Fund, reported a rebound in Febuary, reviving a long-term uptrend, according to the company.
All asset classes in the portfolio contributed to the rebound, Godvig said, Iraqi bond yields fell, equity prices of oil drilling companies rose, as did banking stocks on the Iraqi stock exchange.
No longer the lone foreigners on the trading floor in Baghdad, the hedge fund has been helped by the record high oil prices and the organic profit explosion in Iraq. Raised expectations of doubledigit growth with low inflation and signs of political progress are feeding the market sentiment.
The fund maintained their prime investment strategy to increase Babylon's exposure in a broad-based manner into undervalued blue chips on the Iraqi Stock Exchange. Babylon aims to provide long-term capital growth from an investment portfolio consisting of Iraqi and Iraqi dependant securities.