VALUE Cville Episode 10 - Steve Gorelik
Nov 26, 2025
In this enlightening discussion, investment professional Steve Gorelik from Firebird Management shares insights from his 20 years of expertise in Eastern European public equities. He explores lucrative banking opportunities in Kazakhstan and Georgia, emphasizing structural advantages in underbanked economies. Steve analyzes profitability metrics, highlighting impressive ROE figures and low P/E valuations amid perceived risks. He also discusses the macroeconomic drivers influencing investor confidence and the potential for re-rating these banks as local costs decline.
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Fundamentals + Local Macro Drive Edge
- Firebird pairs fundamental company analysis with deep country-level, legal, and regulatory understanding for Eastern Europe investments.
- That combination lets them find durable mispricings other investors avoid due to perceived complexity.
Underbanked Economies Power Bank Returns
- Firebird prefers banks in growing, underbanked economies where assets/GDP are well below developed markets.
- Dominant local banks capture disproportionate loan and deposit flows, translating national growth into strong bank earnings.
40% Market Share Equals Pricing Power
- Halal (Halyk) and Bank of Georgia each control roughly 40% domestic deposit market share, creating near-duopoly advantages.
- That market power yields pricing power, cheaper funding, and elevated net interest margins versus Western banks.