We believe that disciplined active management, applied over a long-term horizon, can enhance investment performance and mitigate portfolio volatility.
We believe that structural inefficiencies exist within the financial markets of most developing countries. These inefficiencies can give rise to persistent mispricing of individual securities. Such inefficiencies may result from pronounced fluctuations in liquidity conditions, which can distort valuations; alternatively, they may arise from information asymmetries, where market participants misjudge the quality and growth prospects of a given business.
We further believe that most benchmark indices used to measure the performance of developing markets may incorporate certain shortcomings or biases. These biases mean that popular benchmarks may not fully represent the underlying economic and financial activity that they are supposed to track.
We think the presence of these two anomalies – mispriced individual securities, and benchmarks that incorporate biases – may provide us with an opportunity to enhance long-term investment performance for the benefit of shareholders.
We believe that fundamental research on individual companies is the best means by which to capitalize on persistent inefficiencies in financial markets. We construct portfolios from the “bottom up,” meaning that we select individual securities based on their specific merits.
We believe our process is best suited to a long-term investment horizon. We avoid chasing short-term investment themes or trying to time markets.
Our objective is to provide long-term investment portfolios that participate in the opportunities afforded by the growth and progress in the developing world. Our goal is to build lasting wealth for our clients over time.