Shares of Russia’s largest bank Sberbank of Russia PJSC (MIC:SBER) were up in the fourth quarter. The company is delivering higher profitability from a reduction in credit costs, higher margins, and disciplined cost control. The stock also benefited from an increase in oil prices and a more benign outlook for the Russian economy post-U.S. elections. We continue to like Sberbank given its dominant position in the banking sector, its ability to sustain high-teens return on equity, and the potential for an improving Russian economy. (Jose Barria)
From Baron Emerging Markets Fund fourth quarter 2016 commentary.