Josh Rubin discusses how disciplined security selection and calibrated rebalancing creates a clear, consistent framework for investing in EM.
Today’s emerging markets offer more attractive investment opportunities because they are less cyclical and driven by domestic economic strength. The challenges include less mature capital markets and continued economic dependence on developed countries. The volatility presented by emerging markets can be managed by allocating the portfolio to different types of companies:
- Those in mature industries and have a depressed valuation
- Those that are cclearly profitable and have predictable growth
- Those that have the potential to grow and disrupt their industry