Five of the best: Stocks to beat the emerging market blues

EMERGING MARKETS

Emerging markets have been one of the biggest beneficiaries of excess liquidity in the market, but the threat of QE tapering in the US, coupled with a slowdown in growth in the BRIC economies in particular, has resulted in the asset class underperforming significantly in the first half of this year.

Figures from Morningstar analysing the performance of over 2000 funds showed the biggest losers in 2013 so far have been funds which were exposed to emerging markets. The MSCI Emerging Markets TR USD benchmark has returned just 0.54% over the 12 months to 26 June, compared to an 11.61% return from the FTSE 100. Although the forecast looks gloomy for these markets in the short term, Annabelle Williams speaks to Lombard Odier’s head of global equities Didier Rabattu about the five top stocks he hopes can withstand the current emerging market turmoil. Lombard Odier’s top five stocks  1...