Growing global uncertainty around company valuations, monetary policy and business cycles is prompting investors to rethink their asset-allocation strategies – and emerging markets (EM) may be well positioned to benefit. Across EM, a number of factors are combining to create potentially compelling diversification opportunities in both equities and fixed income.
In episode 17 of Gemcast, Mariya Gancheva, Portfolio Manager and Strategist at Gemcorp Capital, explores special situations investing in emerging markets. Mariya discusses the idiosyncratic stories that allow for greater convexity during cycles of distress, how today’s macro backdrop is creating dislocations across sovereigns and corporates, and why identifying genuine opportunity takes both analysis and local, on-the-ground relationships.
Their high yields attract attention, but the diversification potential of frontier bonds deserves equal billing. Under-researched economies, domestic investor bases and reform momentum create opportunities for investors prepared to look beyond familiar markets, explains Witold Bahrke, Senior Macro and Allocation Strategist at Global Evolution.