Stocks have rallied as Putin signaled that he’s willing to work with Ukraine’s new leader. The former Soviet republic on June 20 announced a week-long unilateral cease-fire, halting the government offensive against pro-Russian rebels in its easternmost regions.
JPMorgan boosted its recommendation on Russian equities to “overweight” from “underweight” last week, citing the fading threat of escalating violence in Ukraine. Citigroup said June 6 it expects Russian stocks to rise 10 percent by year-end amid depressed valuations.
“Looking at bottom-up and top-down indicators, we see those turning much more positive,” Rothman said. “One of the reasons that quantitative investing in emerging markets is so powerful is that as political and economic events turn rapidly, we’re able to adjust our views dispassionately and respond quickly and without fear as events move forward.”