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Emerging Markets Equity

An all-cap strategy with a domestic growth bias utilizing a bottom-up, research-driven investment process to identify high return on equity businesses trading at attractive prices

  • Flexibility to invest across the market capitalization spectrum and outside the benchmark
  • Seeks to identify quality businesses and applies a disciplined valuation framework
  • Leverages experienced team and an integrated research approach

Portfolio Manager: Conrad Saldanha, CFA

 

Investment Philosophy

We believe:

  • Sustainable return on equity and cash flow growth at attractive valuations drives long-term performance
  • Domestically-focused smaller cap companies have attractive growth and diversification potential
  • Benchmarks not always reflective of underlying domestic economies
  • Strategic analysis differentiates our approach
 

Investment Process

Investable Universe

  • Companies with principal businesses in Emerging and/or Frontier markets with market caps >$200M and >$2M daily liquidity

Quality Track Record

  • Profitability screen: ROE > 15%
  • Financial strength screen: Net Debt/EBITDA <2.5x
  • Attractively valued: Price/cash flow < 3 year cash flow growth

Strong Outlook

  • Competitive positioning and industry analysis
  • Meet with competitors, suppliers and clients
  • Assess corporate governance, regulatory, political and macroeconomic risk

Undervalued

  • Proprietary cash flow models
  • Analyze sensitivity to cash flow growth assumptions
  • Establish price targets for security

Portfolio Construction

  • Measure risk at the security and portfolio level
  • Minimum upside potential of 50% over 3 years for a security
  • Position size based on level of conviction
 

Quality Fundamentals and Valuation

Approach seeks high return businesses generating strong cash flow growth at attractive prices

Literature

Materials

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Management

Conrad Saldanha, CFA

Portfolio Manager

26 Years of experience

11 Years with firm

Biography