I came across an intriguing investment idea recently while reading hedge fund letters. Broyhill Asset Management has a note on emerging market airports A perfect storm has hit airports located in emerging economies. Even before a global pandemic decimated travel, emerging market equities and currencies had drastically underperformed their developed market peers, particularly in Latin […]
Part of the reason we built this site is because of the historical divergence in equity markets. Developed markets, led by the US are historically expensive. In contrast, emerging markets and frontier markets are historically cheap. There are several ways to take advantage of this historical opportunity. One way is through a top down approach, […]
Often companies in emerging markets look deceptively cheap if you don’t consider the macro background. For example, we were recently looking at buying stocks in Uzbekistan. We found a rapidly commodity exchange business that was trading at 4x P/E. But is 4x P/E really cheap if inflation is rampant, and the currency is rapidly depreciating?You […]
Yesterday the CFA Society hosted a webinar led by Mark Yusko, at Morgan Creek Capital Management: The Global Search for Alpha: All Roads Lead to emerging markets. Emerging market economies have experienced disruption of pandemic lockdowns, capital outflows, commodity price shocks, and supply chain disruptions. Policy makers have responded aggressively and creatively. It appears this […]