Many investors are attracted to emerging markets because of their low valuations relative to the United States. However, stocks with low valuations without a catalyst for growth do not necessarily make good investments. Broad-based emerging market funds are dominated by value sectors such as financials, industrials, energy and materials which do not typically include high-growth, innovative companies. This is why broad-based emerging markets have underperformed US stocks over the past decade. On the other hand, consumer technology firms tend to be entrepreneurial, disrupt traditional business models and often gain large market share over a short period of time. We believe emerging market consumer technology represents a high growth opportunity at an attractive valuation. READ MORE
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