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Global Active Strategies
Broad –
Our core strategy is a broadly-diversified, global active
portfolio that invests in approximately 200 emerging markets
stocks. The primary focus is top-down country allocation.
We enhance the quantitative output of our country allocation
model with qualitative input from our investment team to establish
country targets. We then select stocks on a bottom-up basis
to meet the country targets. Once we identify country targets
and approve stocks, we create a portfolio designed to outperform
a requisite benchmark while keeping within client investment
guidelines.
Concentrated
– Our concentrated strategy focuses on what we believe
are the best stock picks of our active investment team. The
members of our investment team sift through the emerging markets
stock universe to identify those stocks with the most value
potential. Country allocation is secondary and is used to
maintain moderate region and sector diversification. The concentrated
strategy typically includes between 50 and 100 stocks. Although
the degree of benchmark risk is higher, this strategy also
offers greater upside potential from successful stock picks
than our more diversified strategies.
Quantitative Strategy
Our Global Quantitative Strategies are designed for clients looking to invest in emerging markets in a relatively liquid manner while controlling benchmark risk. The New Quantitative Global Emerging Markets Equity (Quant "GEMS") Strategy is bottoms-up stock selection focused. Portfolio construction is based on the expected risk-adjusted return of individual stocks in the emerging markets universe using EMM's proprietary Quantitative Stock Attractiveness Model. The Quantitative Team optimizes this Model to target active risk, and country allocation is risk controlled: bottom-up determined for the commingled fund and customizable for a separately managed account. The Historical Global Quantitative Strategy is top-down country allocation focused. Clients may customize their benchmark and, within constraints, the desired total activeportfolio risk. A quantitative relative value-based country allocation model determines country allocation which historically has been the primary source of value added in the strategy. Stock selection is risk-controlled, benchmark sensitive, sensitive to liquidity needs, and consistent with desired overall active portfolio risk.
Regional/Specialized
EMM also offers specialized portfolios that provide exposure
to unique emerging and frontier market opportunities. Some
of these strategies, such as our Frontier
Africa and Middle
East portfolios, provide access to markets that traditionally
have been difficult for investors to enter. Other strategies,
such as our Global
Small Cap, Small
Cap Latin American, South
Asian, New
Economy, and South Asia Stars portfolios, focus on attractive market segments.
Customization – Unlike many emerging markets managers,
EMM does offer separate accounts for most of our strategies
which can be customized to fit client preferences.
*for separately managed accounts, customizable
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