Obscure Stocks Make the Baron Emerging Markets Fund a Winner (Kiplinger)
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:
- FPA Crescent (FPACX) Fund Makes Some Interesting Emerging Market Stock Bets (Kiplinger)
- Naspers’ Tencent Stake Drives the MSCI South Africa Index’s Returns (KraneShares)
- Fund Manager Allocations to Emerging Markets Hit 22-month High (Livemint)
- British Investment Managers Increase Their Emerging Market Bets (Reuters)
- India ETF Flows Touch $1.5 Billion, Highest Among its BRIC Peers (Economic Times)
- Fundsmith Unveils an Investment Trust Targeting Emerging Market Consumers (FT)
- Best Consumer Stocks for Emerging Market Investors (Morningstar)
- Oppenheimer’s Leverenz Blames “Radical Collapse” in FX Markets for Poor Performance (WSJ)
- Tech Sector Can Power Emerging Market Portfolios (FE Trustnet)
- Leave Emerging Markets to the Fund Manager Pros (Investors Chronicle)