A LAWRENCE OF LONDON STRATEGY FUND
The Russian Petroleum Jelly Fund is based on a strategy that says the big American oil companies which have giant joint-ventures with former communist apartchecks in the former soviet union will sometime in the near future suffer severe losses resulting from a re-emergence of national socialism and a repudiation of all joint ventures with western oil companies.
To exempt the fund from fluxations in the price of oil, the fund maintains a portfolio of 50% long the major oil companies without such ventures and 50% short on major oil companies who are vulnerable to such consfication of assets.
Regardless of the price of oil, if confiscation occurs, the price of fund shares will rise dramatically. On the other hand, should these joint ventures become very profitable and Russia remains a stable market economy, this fund's share value could decline as well.
If you believe the Russians will honor their contracts with the big oil companies, you shoud not invest in this fund.
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