We must forget the turbulence in Turkey and the anguish in Argentina. The specialist in emerging markets Teresa Barger He says it is a "great moment" to invest.
"It's one of those rare moments when the fundamental indicators are very good and the mood is very bad," said Barger, who heads Cartica Management LLC, fund only of long positions of US $ 2,800 million, during an interview at the Asian Summit of the Milken Institute in Singapore.
While everything was ready for a bull market, "was interrupted by the political and political turbulence" of countries like Argentina, Turkey and Venezuela, which do not have "systemic importance," he added.
Emerging markets are not the ones investors prefer this year, in a context of fears ranging from an adjustment of monetary policy in the United States to Argentina's fiscal problems and turmoil in Turkey.
The MSCI Index of Emerging markets has fallen around 20% since January, beating the pace of a 4% decline in the MSCI World Index, and the MSCI Emerging Markets Index has fallen by approximately 6% this year and is heading for the first annual decline in three years .
Barger said he is particularly optimistic about India because many companies show strong earnings growth. Investors can focus on market leaders as companies are forced to start paying taxes, a minimum wage and health services for employees, which makes many firms stop being competitive.
One of the beneficiaries is underwear manufacturer Page Industries Ltd., whose shares have risen 33% this year. "60% of its competitors are informal manufacturers. We think that a good part of that competition is going to collapse or vanish, "Barger said.
Cartica, which is headquartered in Washington, invests only in emerging markets and by June it managed $ 2.8 billion in assets, according to the firm's website. It had 32% of the funds allocated to India, 14% to Brazil, 13% to the Philippines and 12% to Mexico. The 10 largest holdings represent around two thirds of the fund's assets. Barger declined to reveal the returns.