We have a variety of emerging market fund stock picks (US, UK and international funds and fund manager interviews in the media) to highlight this week (among other stocks also getting mentions late on in this post) with some quick takes being:
- Some stock pick ideas for gaining exposure to the higher end of the Chinese consumer market – including non-Chinese stocks.
- A Chinese liquor stock pick that is controlled by a major global liquor and spirits player.
- An Indian automobile stock pick who’s subsidiary is considered to be the Harley Davidson of India.
- An Indian hospital chain that is generating strong growth despite a market where health care price points are generally low.
- A Middle East hospital chain who’s shares have steadily risen. The chain continues to expand as health care directly benefits from the oil boom.
- A Mexico and Caribbean resort operator. However, shares have recently fallen back a bit as travel to just about everywhere else starts to normalize.
- A leading Latin American IT services and software stock whose shares have come off their COVID highs.
Previous posts have covered various themes some funds are using to invest in China. In this post, we mention a recent interview where the fund manager discussed how they use roughly the following framework to capture and categorize investing or stock pick ideas across different market segments in India:
It seems to be a framework developed by financial professionals or academics in India, but obviously has relevance or can be applied to any market.
This post includes a link to a lengthy podcast and presentation where the framework and accompanied investing strategy is discussed in more detail. There is also a more detailed graphic about how it works or is applied with some performance figures for each quadrant going back to the early 2000s.
Finally, I am not a fan of podcasts – especially when they are only posted on Spotify (as they can be hard to navigate or skip through). However, this post includes several excellent straight to the point ones with (mainly UK) emerging market fund managers discussing investing in Asia or China (albeit they generally don’t talk about specific stocks or holdings) that are on YouTube (where they are often posted with links to skip to the key sections).
In one interview, a (somewhat well known) emerging market fund manager bluntly observed how investors nowadays have “limited knowledge” and basically “buy what moves…” For example: If he tells portfolio managers that (hated) Hong Kong stocks are actually attractive right now, they won’t buy them because the shares may not move in any direction. But if he tells them to buy Indian stocks or Alibaba, they will because these stocks move.
It was also observed how there is always something to buy and always something to avoid plus you now need geographic diversification e.g. given geopolitical tensions and the possibility (even if small…) of a World War III breaking out.
Disclaimer. The information and views contained on this website and newsletter is provided for informational purposes only and does not constitute investment advice and/or a recommendation. Your use of any content is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the content. Seek a duly licensed professional for any investment advice. I may have positions in the investments covered. This is not a recommendation to buy or sell any investment mentioned.
For a further disclaimer and an explanation of the reasoning behind these posts: DISCLAIMER: EM Fund Stock Picks & Country Commentaries Posts.
Note: Where possible, company links are to their respective investor relations or corporate pages. Region and country links are to our ADR or ETF pages where there are further country specific resources (e.g. links to local stock markets and media websites). Please report any bad links in the comments section.
Asia
To read more, please visit this article on Substack after Tuesday, 9AM EST.
Similar Posts:
- EM Fund Stock Picks & Country Commentaries (June 13, 2023)
- EM Fund Stock Picks & Country Commentaries (September 26, 2023)
- EM Fund Stock Picks & Country Commentaries (August 22, 2023)
- EM Fund Stock Picks & Country Commentaries (July 25, 2023)
- EM Fund Stock Picks & Country Commentaries (March 28, 2023)
- EM Fund Stock Picks & Country Commentaries (May 23, 2023)
- EM Fund Stock Picks & Country Commentaries (August 15, 2023)
- EM Fund Stock Picks & Country Commentaries (June 27, 2023)
- EM Fund Stock Picks & Country Commentaries (February 14, 2023)
- EM Fund Stock Picks & Country Commentaries (March 7, 2023)
- EM Fund Stock Picks & Country Commentaries (March 21, 2023)
- EM Fund Stock Picks & Country Commentaries (February 21, 2023)
- EM Fund Stock Picks & Country Commentaries (September 12, 2023)
- EM Fund Stock Picks & Country Commentaries (May 9, 2023)
- EM Fund Stock Picks & Country Commentaries (July 11, 2023)