We met the Investment Director of Asia Frontier Capital in Uzbekistan and found out why he moved to the country from Los Angeles and why he decided to stay.
About myself
I was born and raised in Los Angeles. Studied finance at Northeastern University in Boston. Over time, I realized that I did not want to work in a large firm. At the same time, I have long had an interest in Asia. On weekends, I often spent time in Chinatown in Los Angeles. And in my last year I went with friends for a week-long vacation to Taiwan. Then I realized that this region is experiencing a baby boom, like what happened in the United States in the last century. I saw it as big opportunity for yourself.
Before graduating from university, I met venture capitalists from New Zealand who were investing in the frontier regions. Together we created something like a news portal for the Asian region. Relatives and friends dissuaded me when they found out that I wanted to go there. I decided that I would give myself six months. If all else fails, I'll go back.
To begin with, I went to Mongolia, where I lived for about a year and a half. Then I went to Cambodia, on the way I met the head of the company where I work now — Asia Frontier Capital. So, in 2014, I became an analyst in one of the best funds that worked in Indochina. In parallel, I worked as a consultant for a project to restructure the largest port in Myanmar.
About activity
In 2018, I was invited to a conference in Kazakhstan. Once here, I decided to visit Uzbekistan at the same time. I didn’t know much about the country, but after visiting there I realized that this is a good place for investment. Uzbekistan has a large population and a diversified economy with commodity production and developed agriculture.
At that time, Asia Frontier Capital had three investment funds: Vietnamese, Iraqi and Pan-Asian, which dealt with countries from Mongolia to Papua New Guinea. Arriving in Uzbekistan, I also invited my leader. He also saw the potential, and together we opened a fund focused on this country. We found several investors and launched a hedge fund on March 29, 2019, where I became the chief investment officer. We have grown by approximately 74% since opening.
The first thing I focused on was building connections with people, traveled almost the entire country and visited many companies.
I track the financial reports that companies provide, attend general meetings, find out how best to allocate our capital and where to invest.
Uzbekistan has a high interest rate on loans. Many start-ups or small businesses cannot afford to borrow money. But companies need to have access to capital. We, as foreign investors, are developing the market. When our fund first opened, the daily turnover on the market was $10,000-15,000. Today this figure is about $200,000. These are still small numbers, but we see development.
About Uzbekistan
During my first visit, Tashkent impressed me with its developed infrastructure and architecture. The city has exceeded all expectations. And over the past few years, it has improved significantly. In 2018, Tashkent resembled a small town, now it is a rapidly growing metropolis. Then there were half as many cars on the roads.
Once I went to Samarkand on the Afrosiab high-speed train. I was surprised when I found out that it was made in Spain. Almost all foreign investors think that the train is Chinese. This proves that companies from different countries, including Europe, are investing in Uzbekistan.
Uzbekistan has excellent food. I am originally from California, a place that is considered the bread basket of the USA and produces excellent products. However, Californian vegetables and fruits were not even close to Uzbek ones.
One of the most amazing places I visited in the country is the Friendship Bridge, which connects Uzbekistan and Afghanistan. And 30 kilometers from Termez there is an amazing settlement from the time of Alexander the Great Kampirtep. There was no one near the ancient ruins - only me and the taxi driver. Tourism in Uzbekistan is developing, but it has a long way to go to reach its full potential. There are so many unexplored places in this country that will become popular tourist spots in the future.
Tashkent is a great city. There is a river channel between the old and the new area, and this is a good place for a walk. Central Park is a nice area with lots of interesting places.
About traditions and people
As an expat, I try to learn more about the country and meet the locals. About 90% of my environment are Uzbeks. Some of them have already become lifelong friends. People in Uzbekistan are kind, funny, well-educated, enterprising, and that's great.
I often visited Uzbek weddings, celebrated Navruz. These are good traditions. From local food I like "green" samsa, mastava soup. And of course, swimming.
When I first arrived in Uzbekistan, I knew two words in Russian. Today this number has increased to about 500. This vocabulary is enough for life. But almost all of the younger generation knows English, and usually I speak it. There are no communication problems.
About plans
I will continue to be based here, increase the size of the Asia Frontier Capital fund, develop the capital market.
I am planning to invest in real estate. I think that the country has great prospects in this area, because of the growing population.
