After almost 30 years of significant but non-uniform economic growth, the developing world has grown so disperse that the very term “Emerging Markets” has been criticised as being too broad and obsolete.
In our view, it is precisely this heterogeneity that beckons a multi-strategy structure. We believe that a well-considered emerging markets strategy today needs to deploy different portfolio construction methods—indeed, different fields of human expertise—at different times to unlock the latent value in the markets. Bottom-up stock selection versus top-down macro, regional versus global, sovereign versus corporate, growth versus value, debt versus equity... increasingly, every choice changes the pattern of returns and risks an investor faces.
A multi-strategy approach provides a two-layered solution: specialised portfolio managers selecting securities and building strategies, and a dedicated team allocating capital to them.
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