Tariq Qaqish, Fund Manager with Al Mal Capital, confirms these challenges. "Following 2007-08's highly volatile market conditions, very few aside from the long term investors remained actively engaged", he suggests, "and this year, from the early '09 bottom to the top in July, and recent giveback of some gains, it has certainly been a wild ride. However, it's in the midst of such volatility where the real money is often made, if handled correctly. My opinion is that this experience has allowed investors a unique insight, to identify differences between fund managers in the market in a very short period of time."

Qaqish and the rest of his team is asking potential investors to conclude in his favour. His Al Mal UAE Equity Fund is up 53% year to date. Looking back over three years of operation for the Fund, the outperformance gap is 46% against the benchmark. Al Mal's more recently launched MENA Equity Fund, also run by Qaqish and his team, is up 28% in 2009 and has outperformed the MSCI Arabian Markets by 8% since its inception.

Clearly regional parties who assess performance objectively have begun to take notice. ZawyaZawya recently rated the Al Mal UAE Equity Fund as #1 local UAE fund over a three-year period, incorporating a series of both quantitative and qualitative measures in its analysis. Qaqish understands there is a specific discipline behind the success of the program.

"It's fair to say that regional markets require a sense of conviction, along with patience, to be successful." Qaqish says. He and his team of six scour MENA bourses for opportunities with fundamental screens and technical overlays of over a thousand names, resulting in a very small "buy list" given their exacting criteria. "The buy decision is only the beginning of the process. It's mostly about what happens after you enter that makes the difference. It includes carefully examining company-specific developments and staying in constant contact with the management. The importance of people and strategic direction in determining company success has never been greater."

The business of managing money presents its own challenges at the moment. Blair Look, Managing Director of Asset Management at Al Mal Capital, highlights the process of growing client assets in today's markets.

"There are layers of issues given recent events: convincing people that the risk is worth taking is the obvious first step," he indicates. "One also must build confidence in the specific asset class or geography, as few remain unscarred by the credit crunch and economic slump. Only then can you address your competitive advantages - and hope that your case is sufficiently compelling to overcome any residual inertia."

Look adds, "The outstanding performance by our flagship products - the UAE and MENA Equity Funds - has reinforced our abilities as a top regional fund manager. Now that the track record spans a sufficient time frame, we are attracting attention - as evidenced by the recognition by ZawyaZawya. We have recently added both an Income and Liquidity product to address another set of opportunities we see emerging in MENA, and at the same time addressing risk aversion and diversification issues in client portfolios.

"We realize, in the bigger picture, that we have a responsibility to constantly prove our value to new and existing clients alike. Rewards, in the form of recognition and client assets, come many years after your initial efforts are dedicated to build a strong foundation, track record, people and process - the mighty oak from a small acorn."

"Our commitment is to the UAE and the MENA region, and to our belief that this business is a long-distance race and not a sprint."

-Ends-

About Al Mal Capital:
Al Mal Capital is a diversified, multi-line Investment Company headquartered in Dubai, UAE and licensed and regulated by the Central Bank of the United Arab Emirates.

Al Mal Capital offers a wide range of investment products and services for institutions, banks and wealthy individuals, encompassing Investment Banking, Brokerage and Asset Management.

About ZawyaZawya:
ZawyaZawya focuses on the developing business and investment environment in the Middle East. The company provides professionals with the means to identify, assess and monitor business and investment opportunities in both private and public markets across the Middle East and North Africa. Headquartered in Dubai, ZawyaZawya has presence in Saudi Arabia, Bahrain and Lebanon.

For More Information Contact us:
Tel +9714 3601111
P.O. Box 119930
Dubai, UAE
assetmanagement@almalcapital.com

© Press Release 2009

 

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