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The 2014 All-Russia Research Team: Metals & Mining, No. 1: Dmitriy Kolomytsyn
After spending the past two years in second place, Dmitriy Kolomytsyn recaptures the top spot on this roster. Maintaining a coverage universe of 14 Russian metals and mining companies, an increase of two over the past year, the Morgan Stanley researcher is hailed for his integrity and his series of “Research Tactical Ideas” — “trading ideas that have become a most sought-after source of short-term alpha generation for my desk,” as one fund manager says. For example, in April, Kolomytsyn advised investors to overweight Evraz, upgrading the London-based steelmaker and mining company — most of whose operations are in Russia — from equal weight. Rebar prices were rising, he noted, and worries about management’s ability to refinance debt were overblown. Five weeks later the London Stock Exchange–listed shares were up 35.1 percent, at £102.30, and ahead of the sector by 26.1 percentage points, prompting him to recommend shifting back to equal weight, largely on valuation. By the end of May, the stock had climbed 2.4 percent further, against the sector’s gain of 1.1 percent. Another steelmaker is among the 35-year-old analyst’s current favorites. Kolomytsyn elevated Cherepovets-based Severstal from equal weight to overweight in March, reasoning that markets were overreacting to political turmoil in the Ukraine, particularly in light of declining imports to that nation and the weakening ruble. Severstal’s global depositary receipts jumped 19.4 percent through May, climbing to $8.54 and besting the sector by 7.6 percentage points. “Dmitriy is a reliable source of up-to-date information on the issues that affect his companies,” reports one admirer. |
