J O Hambro Capital Management (JOHCM) has opened its JOHCM Emerging Markets fund as an Irish-domiciled UCITS fund for European investors.
The strategy has been run for institutional clients for 16 years, managing over $1.2bn in AUM.
The new fund takes a high-conviction approach to the EM market, looking beyond the largest companies to capture the full asset class. The strategy invests at least 80% of net assets in emerging markets and aims to outperform the MSCI Emerging Markets Index (net dividends) over five to seven years.
It aims to capture both companies with strong long-term potential, as well as businesses with improving momentum not reflected by valuations.
The team uses news flow, earnings and price momentum to identify inflexion points for companies and will also screen for accounting and governance risk.
It will continue to be led by senior fund manager Emery Brewer and co-managers Ladislav Sabo and Dalibor Kováč.
Brewer said: “After more than a decade overshadowed by US equities, emerging markets are drawing investors back.
“But the index is a blunt way to capture them: ownership has narrowed to a handful of large companies and markets, and the best opportunities increasingly sit outside it, in businesses most investors never look at.
“Emerging markets move quickly, so what counts is spotting the turn early, acting on it, and selling without sentiment when the case fades.”
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