EVENTS:   The Fiscal Dilemma - Between Risk Premia and a Recession - Manoj Pradhan/Talking Heads Macro - 26 Feb 25   Best Equity Short Ideas Conference Call 10 - Jules Hull/Dragoneye Research & Eric Fernandez/Two Rivers Analytics & Ed Steele/Iron Blue Financials & Pierre-Olivier Essig/AIR Capital & Jay Van Sciver/Hedgeye & Martin Pradier/Veritas Investment Research - 27 Feb 25   South American Economies and Politics - Marcos Buscaglia/Alberdi Partners & Bolivar Díaz Igal Magendzo/Pacifico Research & Andrea Damico/Buysidebrazil & Mirella Hirakawa/Buysidebrazil - 28 Feb 25   Bitcoin at $2 Trillion: 700 Institutional Asset Managers Are In – What's Next for the Future of Crypto? - Markus Thielen/10x Research - 06 Mar 25   High Yield Bonds in the Telecoms Sector - James Ratzer/New Street Research - 10 Mar 25     ROADSHOWS: Global Merger & Risk Arbitrage Analysis - Rod Manalo /Manalo Advisors   18 - 19 Feb 25       US, EU & Asia Short Equity Ideas - Robert Prather /Vision Research   03 - 07 Mar 25       US Gaming, Lodging and Leisure Long & Short Equity Ideas - Sean Jenkins /Hedgeye   31 Mar - 04 Apr 25       L/S US TMT Equity Ideas - Craig Huber /Huber Research Partners   03 - 08 Apr 25      

The Myth That Failed? How To Invest In Emerging Markets

Talking Heads Macro

Emerging Advisors Group

Wed 16 Oct 2024 - 14:00 BST / 09:00 EDT

Summary

JP kicked off the session by advocating for nuanced investment strategies and skilled active management rather than viewing EMs as a single asset class. Manoj argued that significant stress often drives reform, as seen in India. He highlighted Brazil's resilience and identified specific opportunities in India, Indonesia, and South Africa, cautioning against blanket investment strategies. Jon noted that while China’s GDP growth has been substantial, equity returns remain low due to share dilution. He highlighted potential opportunities from excessive domestic liquidity, framing China as a volatile, high-reward market amidst a challenging macroeconomic backdrop.

Topics

Are emerging markets still a viable asset class after the lost decade?

Different approaches towards investing in EM: passive versus active, long term versus opportunistic/cyclical approaches.

How to incorporate political and geopolitical analysis into portfolio construction.

Potential criteria for picking outperforming countries: valuations, reform, corporate governance, technology, demographics.

The impact of currency on country selection and investor returns.

The role of China in EM portfolios.