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Asset Management

Value investing reigns in emerging markets

Funds focused on stocks that look undervalued are outpacing growth strategies in 2016

Rio returns: earnings forecasts in emerging markets including Brazil have turned positive, boosting value strategies
Rio returns: earnings forecasts in emerging markets including Brazil have turned positive, boosting value strategies Photo: iStock

After a long period of miserable performance, investors who seek out some of the least popular stocks in emerging markets are back on top this year.

These value investors manage funds that focus on stocks that look cheap based on metrics like price-to-earnings ratios. Most investors in rapidly developing but volatile emerging markets pursue growth strategies, looking to identify companies that can deliver above-average earnings momentum.

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