Our approach is to increase the value of our investments by improving corporate governance, transparency and accounting practices of the portfolio companies.

We achieve our objectives through corporate shareholder activism (often in cooperation with other like-minded investors) or through an outside intervention triggered by revelations of corporate malfeasance. We believe that Shareholder Activism is a powerful force to stimulate positive changes in corporate governance, improve corporate legislation and stop value-destroying activities of the companies' management, such as asset stripping, shares dilution and other abuses of minority shareholders rights. Since its inception in 1996,Hermitage has launched several successful public campaigns, which helped to unlock the hidden value of its investments in corporates. The results of such campaigns were a subsequent appreciation of the companies' valuations, has been dubbed "The Hermitage effect".


Related Links:

Harvard Business School Case Study: The Hermitage Fund: Media and Corporate Governance in Russia.

Stanford Business School Case Study: Gazprom and Hermitage Capital: Shareholder Activism in Russia.