Emerging Markets

[MYDemaray]

@PlanMaestro recently lamented that his favorite investment board didn't even have a comment related to Emerging Markets.  Well, as a concession, here it is.  I, for one, have not spent much/any time looking at them and tend to stick with U.S. based names because that is what I most familiar with.  That said, I'm interested in getting up the learning curve of some EM names with the help of others...

[ASTA]

Well maybe he is right but as far as I see it the best investment for emerging market is PEP, KO, AGK, JNJ, IBM, Posco etc. so I think the investment board have been right :D

Like Warren Buffet recently said I like stuff that moves :D example AGK. Anyone how lived in a third world knows that their power supply is abysmal.     

[fareastwarriors]

I been following the general news. I just haven't figured out which companies to buy.

 

I had the good fortune of buying Kasikornbank (OTC:KPCPY), a Thai bank, back in the beginning of the year. I'm sitting on a quick 15% paper gain.

 

[Packer16]

From what I see looking at the EM carnage out there, there appears to be three areas of interest I see:

 

1) Russian oil & gas companies (such as Lukoil, Tatneft and Gazprom)

2) Chinese, Russian and Brazilian banks (such as Bank of China, China Construction Bank, ICBC, Sberbank and Santandar (Brasil)); and

3) Korean Preferreds (such as SK Group, Hyundai Motors, LG Group, Amore Group and Lotte Chilsung)

 

For 1 and 3 above, I have looked at identified some interesting names but for number 2 I have not been able to analyze these to get comfortable except to see what some other have bought.  There was some discussion on BSBR on another thread but I was wondering if anyone has looked at any of the Chinese or Russian banks. TIA.

 

Packer

 

 

[sys]

i just purchased chix.  it makes me happy to see that you are looking in the same sector.

 

i didn't feel like i knew enough, or even trusted the information available to me enough to make an informed choice between individual banks.

[alwaysinvert]

From what I see looking at the EM carnage out there, there appears to be three areas of interest I see:

 

1) Russian oil & gas companies (such as Lukoil, Tatneft and Gazprom)

2) Chinese, Russian and Brazilian banks (such as Bank of China, China Construction Bank, ICBC, Sberbank and Santandar (Brasil)); and

3) Korean Preferreds (such as SK Group, Hyundai Motors, LG Group, Amore Group and Lotte Chilsung)

 

For 1 and 3 above, I have looked at identified some interesting names but for number 2 I have not been able to analyze these to get comfortable except to see what some other have bought.  There was some discussion on BSBR on another thread but I was wondering if anyone has looked at any of the Chinese or Russian banks. TIA.

 

Packer

Just for screening purposes - do Korean prefs all have slightly different characteristics or are most or all of them equivalent to common but no voting?

[Packer16]

The other major difference is liquidity so a good number of funds would probably not buy them.

 

Packer

[fareastwarriors]

Mobius Says Emerging-Market Selloff to Deepen Amid Outflows

 

 

 

http://www.bloomberg.com/news/2014-02-07/templeton-s-mark-mobius-says-emerging-markets-selloff-to-deepen.html

[fareastwarriors]

Mobius Says Emerging-Market Selloff to Deepen Amid Outflows

 

 

 

http://www.bloomberg.com/news/2014-02-07/templeton-s-mark-mobius-says-emerging-markets-selloff-to-deepen.html

 

Mobius Says Emerging-Market Rout Near End as Valuations Lure

http://www.bloomberg.com/news/2014-02-11/mobius-says-rush-out-of-emerging-markets-nears-end-on-valuations.html

[klarmanite]

I think emerging markets asset managers are getting interesting. I prefer the UK based ones over US names for tax reasons (Aberdeen, Ashmore, Schroeders). Working on a write-up on one of them. May post in the ideas section.

[CorpRaider]

What was the last market to actually emerge?  Korea?

[ebdem]

Hey guys,

long time no post. We had a very interesting discussion with Emerging Markets expert Axel Krohne. He is really diving deep in unknown markets, likes Nigera, Laos or in Eastern Europe. Have a look here

and here

Best

[james22]

For EM (and SV) exposure, I use funds.

[Spekulatius]

For EM (and SV) exposure, I use funds.

 

Nigeria looks pretty cheap if these ETF stats can be trusted:

https://finance.yahoo.com/quote/NGE/holdings?p=NGE

[mhdousa]

For EM (and SV) exposure, I use funds.

 

Any particular ones you like?

[james22]

I use VEMAX (and VSIAX) because they are available in my 401k.

 

I'd otherwise probably tilt my EM to Small and Value if I could.

 

If had DFA access: DEMSX and DFEVX http://www.altruistfa.com/dfavanguard.htm

 

Otherwise: https://www.bogleheads.org/forum/viewtopic.php?t=208687

 

 

[mhdousa]

I use VEMAX (and VSIAX) because they are available in my 401k.

 

I'd otherwise probably tilt my EM to Small and Value if I could.

 

If had DFA access: DEMSX and DFEVX http://www.altruistfa.com/dfavanguard.htm

 

Otherwise: https://www.bogleheads.org/forum/viewtopic.php?t=208687

 

Thanks!

[stahleyp]

Most of the funds from Matthews are pretty good for emerging markets. I have small positions in their China and China Dividend funds.

 

Vanguard Emerging Markets is a decent choice. Though if I had to guess, I would say VMMSX, NEWFX, or SIGIX will probably do a little better long term.

[sarganaga]

First Trust Emerging Markets Small Cap AlphaDex Fund (FEMS) is a factor based fund that tilts toward small cap, value, & momentum.

 

As per Morningstar http://portfolios.morningstar.com/fund/summary?t=FEMS&region=usa&culture=en_US some interesting metrics.

 

I own quite a bit of this.

 

 

[CorpRaider]

Pimco has one of those fundamental plus mutual funds using a RAFI index.  I used to hold that but I decided no more swaps.  FNDE follows a RAFI index for emerging markets.  Seems like it makes sense in EM to me because it uses shareholder yield as a big part of the muscle movement (seems like it might steer away from some of the non-capitalist impulses/firms and other agency costs).