Emerging Markets Debt

Philosophy

We believe that emerging market bonds are regularly mispriced due to investors’ overemphasis or overreaction to short-term events such that consistent risk-adjusted returns can be achieved by systematically identifying undervalued countries and companies as bond prices generally follow credit fundamentals over the long-term.

Process

We invest in a portfolio of government bonds, and some corporate bonds, from emerging market countries in both hard and local currencies. We are value-oriented investors who seek opportunities across all types of credits that we categorize as mature, stable, risky or distressed. Our investment approach takes an entire market cycle view.

We employ our own quantitative and qualitative in-house research and analysis. We believe this gives us an edge in (i) identifying undervalued securities that offer the best risk/return characteristics, and (ii) making determinations as to which debt issuers have both the ability and willingness to pay.

We believe country selection analytics is the key ingredient to successful, risk managed investing in Emerging Markets Debt securities. A key element of our competitive edge, and alpha generation, is our proprietary country selection analytics.

Portfolio Management

Yong Zhu, Ph.D., CFA

Senior Portfolio Manager