Carrhae Capital LLP — 13F Portfolio

Carrhae Capital LLP operates as a specialist emerging markets hedge fund headquartered in London, United Kingdom, filing with the SEC under CIK #0001555254. The firm represents a focused investment platform dedicated to identifying compelling opportunities across developing economies, with particular emphasis on Asian and frontier markets where specialized expertise creates analytical advantages. Founded by Ali Sherazi, who serves as Chief Investment Officer, Carrhae Capital draws its name from the ancient Battle of Carrhae—a historical reference that perhaps signals the firm's willingness to pursue opportunities in challenging terrains where conventional approaches may falter. The London base provides strategic positioning within one of the world's premier financial centers, offering access to global institutional investors and emerging markets research networks. The firm's institutional structure serves sophisticated investors seeking dedicated emerging markets exposure through active management. Carrhae Capital's mandate allows for flexible positioning across the emerging markets spectrum, from large liquid markets like China and India to smaller frontier opportunities where market inefficiencies may be most pronounced. As an FCA-regulated investment manager with SEC 13F filing obligations, Carrhae Capital provides transparency into its U.S.-listed equity holdings, which may include American Depositary Receipts (ADRs) and U.S.-listed emerging markets securities. These filings offer a partial window into the firm's positioning, though the full portfolio likely encompasses direct holdings in local emerging markets that fall outside 13F disclosure requirements.

Carrhae Capital LLP employs an opportunistic, research-intensive investment strategy focused on identifying compelling opportunities across emerging markets. Under the leadership of Founder and CIO Ali Sherazi and Partner James Faulkner, the firm applies deep fundamental analysis to navigate the complexities of developing economy investing. The investment philosophy emphasizes identifying structural growth opportunities in emerging economies—businesses positioned to benefit from rising consumer purchasing power, infrastructure development, financial services penetration, and technological adoption curves that distinguish developing markets from mature economies. This growth orientation reflects the firm's conviction that emerging markets offer superior long-term compounding potential despite elevated near-term volatility. 13F Portfolio Composition analysis reveals the U.S.-listed component of the firm's emerging markets exposure, which may include ADRs of major Chinese, Indian, Latin American, and other emerging market companies. However, the 13F-disclosed holdings represent only partial visibility into a strategy that likely maintains significant positions in locally-listed securities across multiple jurisdictions. The concentrated, high-conviction approach typical of emerging markets specialists produces portfolios that differ substantially from broad emerging markets indices. Rather than passive replication of market capitalization weights, Carrhae Capital's fundamental research process identifies specific companies with superior growth prospects, competitive positioning, and management quality—characteristics that warrant meaningful position sizing. Sector Allocation History tracking through 13F filings illuminates thematic positioning within the U.S.-listed emerging markets universe. Technology, consumer, and financial services sectors—reflecting the growth drivers of developing economies—often feature prominently in specialist emerging markets portfolios. Turnover remains moderate to high, reflecting both the dynamic nature of emerging markets investing and the firm's willingness to adjust positioning as opportunities evolve and risks emerge.

Carrhae Capital LLP represents a specialist London-based hedge fund applying concentrated, research-driven investment principles to emerging markets. Under the leadership of Founder and CIO Ali Sherazi, the firm serves institutional investors seeking dedicated exposure to developing economy opportunities through active, conviction-weighted portfolio management. Key portfolio characteristics observable through 13F analysis include concentrated positioning in U.S.-listed emerging markets securities, growth-oriented selection criteria, and moderate-to-high turnover reflecting the dynamic nature of emerging markets investing. The disclosed holdings represent partial visibility into a strategy with broader geographic reach across locally-listed securities. The firm's Historical Track Record through varying emerging markets environments provides essential context for understanding capital trajectory across different regime types. Sharpe Ratio analysis offers perspective on risk-adjusted efficiency, critically important for a strategy operating in inherently volatile markets where raw returns may mask substantial risk-taking. Emerging markets strategies require evaluation against appropriate benchmarks, making Alpha Generation vs S&P 500 less relevant than comparison against emerging markets indices. The specialist approach should demonstrate security selection skill that justifies concentration and active management costs relative to passive emerging markets alternatives. Volatility Profile measurement illuminates the magnitude of return variability investors should expect, informing appropriate allocation sizing within diversified portfolios. Emerging markets specialists typically warrant position sizing reflecting their higher volatility rather than direct comparison with developed markets exposures. For allocators and analysts examining Carrhae Capital LLP's 13F history, a critical diagnostic question emerges: How does the concentrated, conviction-weighted approach perform during periods of emerging markets stress when correlations spike and liquidity evaporates—and does the fundamental research discipline demonstrate the ability to identify quality companies that recover value following indiscriminate selloffs, or does concentration amplify drawdowns without commensurate recovery acceleration?

The risk characteristics of Carrhae Capital LLP's portfolio reflect the inherent volatility of emerging markets investing combined with the concentrated positioning typical of specialist hedge funds. Managing capital in developing economies exposes investors to multiple risk dimensions beyond traditional equity market fluctuations. Volatility Profile for emerging markets-focused portfolios typically exceeds developed market equivalents significantly. Currency volatility, political risk, regulatory uncertainty, and liquidity constraints can amplify price movements in ways uncommon in mature markets. The concentrated, conviction-weighted approach further intensifies volatility relative to diversified emerging markets index exposure. Max Drawdown Depth analysis provides critical insight into how the strategy navigates emerging markets stress events—periods when risk aversion triggers capital flight from developing economies. Historical episodes including the 2015-2016 China concerns, the 2018 emerging markets selloff, and the 2020 pandemic-driven liquidation tested emerging markets specialists severely. Understanding drawdown behavior during these events illuminates the strategy's resilience. Emerging markets investing introduces risks often muted in developed economy portfolios: geopolitical tensions affecting specific countries or regions, commodity price dependencies in resource-exporting nations, currency devaluations, capital controls, corporate governance challenges, and regulatory interventions. Carrhae Capital's research-intensive approach attempts to anticipate and navigate these risks, though concentrated positioning can amplify impact when specific country or company risks materialize. Downside Capture Ratio relative to emerging markets benchmarks offers perspective on whether the active approach provides protection during selloffs or amplifies losses. The concentrated portfolio construction may produce pronounced deviation from index behavior in both directions. The London base introduces currency considerations, with sterling-denominated returns affected by GBP movements relative to the U.S. dollar and local emerging market currencies.