Fundamental active strategy seeking consistent outperformance from stock selection, complemented by country and industry positioning.
We utilize a four-step investment process to identify the most attractively valued Emerging Market countries, and select the most promising investments within those geographies. Proprietary country risk and valuation models are used to identify where equity valuations and investor expectations are below the levels merited by economic fundamentals. The analyst team uses our internally developed quantitative Stock Valuation Model to help identify the most compelling investment opportunities for further research. In-depth fundamental research and financial modeling determines whether companies are undervalued on a discounted cash flow (DCF) basis, have underappreciated dynamics that could trigger a positive revaluation and are exhibiting signs of improvement that could accelerate the time horizon for any such revaluation to occur. The final portfolio is constructed to be well diversified across countries, industries and macro-economic exposures. Continuous monitoring of all individual investment theses, positions and catalysts ensures that our value-based perspectives remain timely and relevant and allows us to maintain a consistent sell discipline.