Entering 2021, we believe strong growth opportunities for emerging markets remain intact. A global injection of liquidity, low interest rates and a stable dollar is a very favorable cyclical setup as we recover from the global pandemic.
In a turnaround from the first half of the year, Global Opportunities Fund's more cyclical businesses fared best in the fourth quarter, while more defensive consumer-facing businesses lagged.
We believe Thornburg Investment Income Builder has resilient businesses with strong capital structures, representing excellent value at current prices.
We are constructive about the outlook for international markets in 2021. The bounce in Value versus Growth and a number of other underperforming markets may still have a ways to run, but we believe a balanced and flexible core stance is still the best one in this market.
We sought to reduce risk, which has the positioned portfolio tackle a dicey environment, while balancing both upside potential and downside protection.
We continued the work that began over the summer by fine-tuning risk exposures and shifting allocations as COVID-19 cases rose, election-related volatility increased, and leverage across corporations and governments rose. Our ability to find value helped boost quarterly results despite the concerns over government stimulus and unemployment.
We are constructive about the outlook for international markets in 2021. While the bounce in Value versus Growth and a number of other underperforming markets may have a ways to run, we believe a balanced but flexible core stance is still the best one in this market.
We retain a long-term focus in our investment horizon and remain true to our core set of repeatable investment principles of finding high-quality stocks that can sustainably create business value over the long run and a general avoidance of trying to time or trade around short-term shifts in investor positioning or sentiment.
The market forces investors to adapt, and current market conditions have accelerated many changes that were already in motion. We welcome market volatility, which plays to our strengths. While we remain nimble in our portfolio management, we stay steadfast in our process, which has been foundational to our success.
Fixed income markets continued to rebound but the Fed's commitment to hold rates low should give investors cause for concern.
