Only in recent years frontier markets investing has become fashionable . It doesn’t mean there are no high performers in these markets. The only difference between US or European investors and frontier markets investors is the lack of exposure the later receive.
THE FINAL 5 INVESTORS IN FRONTIER MARKETS
After a time-consuming research, trying to find relevant information available on frontier markets investors, we finally manage to compile a list of five of the most successful investors.
Two of them are famous investors and the other three are less known. The main difference between the two groups in their location. Two from US and the other there from Europe. Probably, this explains the difference in exposure the two groups receive.
This list is compiled based on performance, not on assets under management.
An emerging markets rock-star investor, Mark Mobius is one of the most famous investors world wide.
He is fund manager in almost 30 funds focusing on emerging and frontier markets stocks. An investing veteran, Mark Mobius focuses mainly on value stocks from BRICS to Columbia or Romania.
Apart from his outstanding performance in emerging markets, over time he proved that value investing works outside the US too, in emerging and frontier markets. His investment approach emphasize undervalued stocks and strong management.
A legend in the investment world, in his career, George Soros used a mix of speculation and long-term investment, creating his own, unique style.
Along the years George Soros has been investing in frontier markets but in a specific way. The other managers on this list invest mainly in liquid, big regional companies, creating a risk cushion, ready to liquidate at any time if the unexpected frontier market coup d’etat occurs.
George Soros, as in his investment career, has created its own unique style. His investments in frontier markets take more of a private equity approach. Investing in private agricultural farm land and hotel chains in South America or gold mines in Romania.
The CEO and fund manager of Asia Frontier Capital, Thomas Hugger invests only in frontier markets in Asia, from Bangladesh to Mongolia or Vietnam.
Thomas Hugger specialized in investing only in one particular region, Asia, and in one particular country type, high-growth and young demographic Asian frontier markets.
His investment style takes a global macro approach mixed with value investing. Focusing on certain sectors he then looks for undervalued companies to invest.
Thomas Hugger’s chosen sectors reflect his belief in the continued development of these countries. Investing in consumer staples and financials to gain exposure to young demographics and infrastructure investments for growth exposure.
One of the fund managers behind Charlemagne Capital’s frontier funds, Stefan Bottcher investment strategy is focused on capital growth by investing in stocks in frontier markets, but not within a specific geographic area. He takes more of a global approach.
His investments are mainly in stocks, almost 95%, the 10 biggest holdings compose 44% of his investment and are mainly in financials stocks in Romania or Georgia and healthcare in Middle East countries.
Stefan Bottcher investments have a short twist too with the long-short OAKS Emerging and Frontier Fund. This is one of the few managers that ventured into shorting frontier stocks and succeeded. That is a performance by itself!
The Dutch born investor, Wytze Riemersma, specialized in investing only in frontier markets. However, his investment has an emphasize on high dividend income. As a style, Wytze Riemersma is characterized as a value investor.
His three funds, all based on his high dividend strategy, offer exposure to all types of frontier markets investors. The Global Frontier offers exposure to high dividend stock in worldwide frontier markets. The Africa fund gives you exposure to high dividend stocks both from Magreb and sub-Saharan countries and for those who prefer country specific investment, the Vietnam funds gives exposure to high dividend stocks within the South-East Asian country.
The take from Wytze Riermersma is the more focused on a geographical area or sector an investment is, the better the returns proved to be. As such, the Vietnam fund outperformed all the other funds.
All content on DraculaCapital.com is for information purposes only. Do not use this content as investment recommendation. Every type of investment involves the risk off losing investment principal. Frontier Markets presents higher risks than mature markets.