BlackRock's Vecht: Search for long-term EM winners is 'futile'

Emerging market investors are misguided if they believe they can buy both long-term winners and growth companies, according to BlackRock's Sam Vecht.

Vecht, speaking at the Morningstar Investment Conference, challenged what he saw as misperceptions about the asset class, including the idea EM managers are able to find long-term winners. While BlackRock’s head of emerging Europe equity acknowledged some companies could perform well in certain years, he said they are unlikely to be able to repeat that performance consistently. “Long-term winners in emerging markets do not exist. The chances of finding a long-term winner is considerably less than winning the EuroMillions, ” Vecht said. To illustrate his point, Vecht highlighted the...