An article in Kiplinger notes that the Baron Emerging Markets Fund Retail Class (MUTF: BEXFX) has beat 96% of diversified emerging-markets funds over the past 12 months because of manager Michael Kass’ philosophy of deeply researching companies. Specifically, Kass looks for shareholder-friendly companies that are run by entrepreneurial managers, have sustainable competitive advantages and have the potential to generate long-term earnings growth. He or an analyst will also travel abroad to meet with company executives every few months.
This deep research has helped him find obscure companies such as Shuaa Capital, a United Arab Emirates financial firm; Steinhoff International Holdings Limited (JSE: SHF), a South African furniture maker; and China’s Sihuan Pharmaceutical Holdings Group Ltd (HKG: 0460). All of these emerging market stocks have at least doubled over the past year.
And as you can see from the chart below, the Baron Emerging Markets Fund has clearly left the iShares MSCI Emerging Markets Indx ETF (NYSEARCA: EEM) in the dust:
Similar Posts:
- FPA Crescent (FPACX) Fund Makes Some Interesting Emerging Market Stock Bets (Kiplinger)
- Why Small Cap Emerging Market Funds Win Big and How to Pick the Right Fund (Barron’s)
- Mark Mobius vs Passive Emerging Market Funds (CBS MoneyWatch)
- Oppenheimer’s Leverenz Blames “Radical Collapse” in FX Markets for Poor Performance (WSJ)
- Fund Manager Allocations to Emerging Markets Hit 22-month High (Livemint)
- Its Difficult to Find a Good Emerging Markets Fund (every investor)
- British Investment Managers Increase Their Emerging Market Bets (Reuters)
- Terry Smith: Emerging Markets to Outperform Over the Long-term But Brace for Volatility (FE Trustnet)
- Emerging Markets Back in Favour Among European Investors (Citywire)
- Why Emerging Markets Are Up to the Stress Test (FP)
- S&W’s McGrath: Emerging Markets Are at the Perfect Entry Point (FE Trustnet)
- Rplan Survey: Investors Have Been “Taken In” by Emerging Market Hype
- Will Frontier Markets Follow the Same Emerging Market Pattern? (The Telegraph)
- Shift Your Emerging Market Consumer Exposure from MNCs to Local Stocks (FE Trustnet)
- Are Frontier Markets a Viable Alternative to Underperforming Emerging Markets? (PA)
