Speaking at Portfolio Adviser’s Summer Congress 2015, the investment specialist pointed to emerging market equities’ 30% discount to global equivalents with profitability at 25% below trend.
This, he said, means there is plenty of scope for recovery, which has already started in recent weeks with downgrade estimates of earnings coming to an end.
While avoiding Latin American equities in favour of heavy weightings to the likes of China, India, Taiwan and Korea in his EM strategy, it is the complete opposite in fixed income.
Spare a holding in Indian local debt, Hole sees poor value in Asian bond markets and prefers better valued opportunities in Brazil, Mexico and Columbia.
