The Driehaus Emerging Markets team focuses on investing in emerging markets securities of all capitalizations, through the Driehaus Emerging Markets Growth, Driehaus Emerging Markets Small Cap Equity and Driehaus Emerging Markets Ex-China Equity strategies. The strategies provide investors with exposure to companies experiencing growth inflections in addition to positive earnings revisions and medium-term (price) momentum, two factors that are positively correlated to alpha generation. The team is led by portfolio managers Howard Schwab, Chad Cleaver and Richard Thies.
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Ask Us!The strategy seeks to outperform the MSCI Emerging Markets Index over full market cycles.
The strategy aims to outperform MSCI Emerging Markets Small Cap Index.
The strategy seeks to outperform the MSCI Emerging Markets Ex-China Index over full market cycles.
The team employs a growth-oriented investment philosophy focusing on identifying company-specific growth inflection points and exploiting associated marketplace inefficiencies. Our philosophy hinges on a belief that market expectations tend to be ‘anchored’ to historical information and that points of inflection therefore introduce dislocations between market expectations and fundamentals which generate significant alpha capture opportunities. The team combines fundamental, macro and behavioral analysis with a nimble/active investment approach to quickly identify inefficiencies and generate a portfolio which uniquely seeks to achieve superior aggregate growth rates as well as superior risk characteristics.
The year has been quite exciting and that shows no signs of abating. Aside from the higher stress levels, we find the current environment to be fascinating from an intellectual perspective and find very few analogues historically. The world has been generally moving in one direction, toward closeness and integration, for many decades. That trend paused somewhat beginning in 2016 but we are looking toward a likely reversal of some of that global integration, which would really be the first time the world has seen that.
This month’s commentary examines contributors and detractors from Q1 performance, as well as recent portfolio shifts, in greater detail.