A Case For Active Management In Emerging Markets

Emerging markets should outperform US stocks over the next several years due to a falling US dollar (https://youtu.be/U_wJ9mFkmc4​) and because they are selling at a discount compared to US stocks (https://youtu.be/jzsJE9iPM38​). Since most emerging markets have a larger retail investor base, professional management can take advantage of opportunities that arise from retail investors becoming emotional. In addition, most emerging market indexes invest in larger companies and inefficient State-Owned Enterprises. We believe active emerging market managers investing in small and mid-sized businesses to be the best way to invest in emerging markets.