Lares Capital
Hedge fund manager, small-cap, long/short equity

Buy Hungary, Buy Magyar Telekom!

Investment thesis

Hungary is suffering from a perception that the country is the "economic basket case". It's small country, not on every investor's radar, which created a lot of headline risk due to populist policies of Victor Orban and political popularity of extreme right parties (Jobbik). Yet many of these policies actually helped to heal the Hungarian economy, which has been steadily recovering this year, but few investors pay attention.

Hungary has a small investible equity market with only four companies liquid enough to consider investing.

Table 1: In "yellow" - investible companies in BUX index (13 cap weighted large-caps)

(click to enlarge)

MOL Group - Hungarian Oil and Gas Public Limited Company, is an integrated oil and gas group...

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