During the quarter, the Fund initiated a position in Sberbank (MIC:SBER), the largest bank in Russia with a 45% market share. The conservatively-managed bank is driven entirely by deposit funding and loans, making it one of the country’s most resilient financial institutions. Polaris’ valuation profile of Sberbank compensates for the geopolitical risks present in Russia. We bought a partial position, anticipating further negative events that may make the stock even more attractive on a valuation level.
From Bernard Horn (Trades, Portfolio)’s Polaris Global Value Fund Q3 2014 Shareholder Letter.
