EM Leaders LLC
EM Leaders LLC is an independent, registered investment advisor working exclusively for institutional investors wishing to advance investments in emerging markets (EM). While most institutions are already invested in EM, they can benefit from an independent EM platform that extends in-house research into on-the-ground networks of leading EM experts. Partnering and knowledge sharing in an open-architecture best-of-class network has become an invaluable complement to high-performing institutions expanding across EM.
EM investments have become mainstream, EM policies have shown global impact beyond currencies and commodities, and EM markets have been growing at much faster speeds than developed markets. EM talent in investment management has impressively expanded, so that global institutions are acquiring local talent across EM and sophisticated investors are engaging local investment managers, who indeed have been outrunning their global peers. EM Leaders is working with leading local managers proving strong governance, cutting edge research, superior execution and solid track records of adding alpha from bottom-up stock selection with high active shares.
EM Leaders open-architecture platform of leading local EM managers has demonstrated superior results from four advantages: 1. Local benchmarks have higher weights for large-cap domestic consumer-oriented industries rather than mega-cap exporters listed overseas. 2. Local equities are on average one notch smaller, more nimble and efficient, and better governed than state-owned mega-cap firms, but often are less researched overseas. 3. Local research and execution are superior and are driving bottom-up alpha from high active shares and from non-index positions. 4.Sound risk management aiming to achieve factor-balance, higher diversification, and reduced beta has reduced drawdowns and fortified multiple local alpha engines.
EM Leaders collaborates with superior local managers in over 20 emerging markets, provides regular market and manager reviews, conducts due-diligence with local experts, offers tailored solutions, and treats clients as partners in sharing knowledge transparently. Sophisticated institutional investors appreciate real-time access to local experts across emerging markets, offering value from bottom-up local stock selection, which has become the dominant driver of investment performance. EM is a space for high active alpha, driven by information asymmetries and local peculiarities with a rapidly growing universe of over 3,000 innovative local managers, as compared to a saturated poorly performing group of global managers.
EM Leaders LLC is taking a long-term institutional perspective. EM shall be an expanding asset class, as the majority of world growth continues to originate in EM. Allocations to EM shall grow significantly, as their index weights are expected to double over the next decade. Profits and valuations in most EM shall improve relative to developed market peers, and diverging cycles shall offer plenty of opportunity to diversify. Human capital shall continue to flourish across EM, and investment managers within EM shall expand well beyond their current share managing just 10% of worldwide assets.
Note: past performance is illustrative only and cannot guarantee future results.
Think Globally, Invest Locally: info@EMLeaders.com