"Hermitage's Russian Quandary (A) and (B)"

Raymond Fisman, Eric Werker, Lauren Weber

December 2010

Publication type: Case study

Research Archive Topic: Business Economics and Public Policy, Capital Markets and Investments, Corporate Finance, World Business

Abstract

In June 2007, the offices of Russian hedge fund Hermitage Capital were raided by Moscow police; in the months that followed, Hermitage founder Bill Browder found himself banned from Russia and fending off efforts to expropriate the fund's Russian assets. This case describes the challenges faced by Hermitage in responding to these threats, and more broadly discusses the perils of doing business in a business environment with weak legal and political institutions.

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