We believe that some of today’s most robust emerging market growth opportunities are not fully reflected or valued in developed market equities. By focusing on bottom-up fundamental research, we aim to identify and capture attractive, long-term returns from significant and enduring investment themes. Moreover, by picking stocks from a clearly defined universe based on companies’ sales exposure or global end-demand for emerging markets products, our experienced portfolio management team can draw on the best ideas of regional specialists located globally, including within emerging markets.
Our bottom-up, fundamental research begins by identifying significant investment themes. We focus on the developed markets universe, which for our purposes includes any company within the MSCI World Index, excluding Hong Kong and Singapore. From this pool of approximately 1500 stocks we pare down the possibilities to 600 potential names, based on the results of deep fundamental research by analysts located globally. In general, we look to identify quickly growing but undervalued companies that have at least 20% sales exposure to emerging markets. Ultimately, our portfolio mangers build a concentrated Global Developing Trends portfolio with 40 to 70 equities of our best ideas—those companies with a combination of attractive valuation and strong growth potential. This portfolio is continually monitored to ensure that risk parameters are acceptable and our original investment thesis remains intact.