Artem Fokin from Caro-Kann on Kaspi $KSPI

Someone knows what is the track record of Artem's fund portfolio? His opinion are linked to his fund performance

Nice Hair for sure

Seems to be a high quality company. Really interesting position that I held for 2 years. But recently closed my position due to red flags such as:

(1) suspicious nature of the Lomtadze and Kim share transaction (the two major shareholders) in 2018 covered by Forbes.
(2) Satybaldy (who was the he third biggest shareholder) is related to the former president of Kazakhstan and is leading figure in the Kazakh ruling party. He weirdly cashed out pre-London IPO and Forbes suggests it was to avoid red flags with UK regulators. There are numerous internet articles saying outright or suggesting he owns a lot of Kaspi still through offshore funds. And Satybaldy is now in jail for embezzlement of Kazakh state owned companies

Incredibly interesting. Not sure I have the guts to invest in the frontier but it does sound compelling.

This is an exceptional interview. Some key takeaways:
- Kaspi is a rapidly growing technology company with 3 key verticals:
*Payments (>50% growth R&NI), Marketplace (>55% growth R&NI) and Fintech (~28 Revenue growth, ~5% Net Income growth).
- High market share (>1/3 of Kazakhstan's population are DAU), payments market share 60-75%. Market vertical is the dominant in country ecommerce platform (3P = does not own its inventory).
- Interactive network effect created through the payments and marketplace businesses.
- Synergies throughout the verticals, with data from one vertical allowing for informed decision making in other aspects of the business.
- Competent management team, who has shown the ability to allocate capital and create new business lines (tickets, payment and marketplace).
- Attractive corporate culture (Glassdoor may provide more insights)
- PE multiple ~12X, with the company indicating that 50% of net income will be returned to shareholders.
- Risks include emerging/frontier market risk, market saturation risk, run on the bank risk and local currency risk.
- Ceo owns 23.42%, chairman owns ~24.26%, other members of management own ~3% and private equity ~28.5% (positive for interest alignment, potentially negative due to take private risk).
- Possibility of NASDAQ listing (comment from company publicly).
Not investment advice, do your own DD.