The unlikely sweet spot in unloved EM equities

The case for emerging market (EM) small caps on a long-term basis is compelling.

EMs are unloved and underowned. Within the asset class, small caps have endured their longest period of underperformance relative to large caps since the 1990s. More generally, lower levels of analyst coverage and institutional ownership make small caps a sweet spot for EM stockpickers.  Seven key themes in emerging markets However, while it will be easier to make money as an EM small-cap fund manager over the next decade compared to the last, there remains a great need to be selective. When we look at our universe of stocks, we find significantly more opportunities west of Bang...