William Browder, chief executive of Moscow-based Hermitage Capital Management, is the largest foreign investor in the Russian stock market.
He is a vocal supporter of President Vladimir Putin and has fought for business reforms aimed at protecting Russian investors. In November, the 42-year-old Browder was barred by the Russian government from re-entering the country. He runs his $4 billion hedge fund from his London office, with a team of 15 analysts in Russia researching companies.
Browder last week attended Fortune magazine’s Brainstorm conference in Aspen. He answered questions from The Denver Post via e-mail, touching on his banishment from Russia, his investment strategy and his connections to Colorado.
Q: Who do you think barred you from re-entering Russia?
A: It is hard to say exactly. The one thing I can say is that over the 10 years that I have been investing in Russia, I have stepped on a lot of toes in trying to promote transparency in Russian companies. It is not completely unexpected. If you take on bad guys in Russia, you cannot expect them to not retaliate. In the past, the retaliations were much more severe, with physical threats, phone bugging, groundless lawsuits and the like.
Q: International markets have slumped recently. Why are Russian stocks attractive?
A: Investors can buy into Russian companies at very low valuations. For example, Gazprom, the largest gas company in the world, trades at about $2 per barrel of hydrocarbon reserves; Exxon Mobil trades at about $17 per barrel. I believe that discount will eventually narrow.
Q: What connections do you have to Colorado?
A: This is the second time I have attended the Fortune Brainstorm conference in Aspen. I find it very useful as a way of networking with CEOs and government officials from around the world.
I have also had a long-term affection for Colorado, dating back to my first ski trip to Aspen when I was 11 years old. Since then, I attended CU-Boulder from 1981 to 1983. I have also become a close friend of Gov. (Bill) Owens, who wrote a letter on my behalf to President Putin asking for my visa to be reinstated.
Staff writer Will Shanley can be reached at 303-820-1260 or wshanley@denverpost.com.
