Investing in companies at key growth inflection points, driven by rising earnings expectations and positive price momentum: two powerful drivers of excess returns.
The case for Emerging Markets
Emerging markets sit at the intersection of structural growth and market inefficiency. Powerful demographic and consumption trends drive long-term growth.
Why now?
Current developed market yields are increasingly reflecting fiscal concerns. Emerging markets offer resilient fundamentals, attractive valuations and real yields. With a weaker US dollar and Asia's AI investment boom providing additional tailwinds, the investment case continues to strengthen.
Inefficient market
Market inefficiencies, dislocations and sentiment swings create opportunities to uncover mispriced growth companies, rewarding active investors.
Beyond US concentration
As US market concentration peaks and the US dollar weakens, emerging markets stand out for their attractive valuations, stronger growth outlook and powerful AI-led capex cycle.
The AI story = Emerging Markets
Emerging markets are at the heart of the global AI value chain. Countries such as Taiwan, Korea and China are becoming increasingly important manufacturing and innovation hubs, supported by a powerful capex cycle.
Domestic growth
Beyond technology, under-penetrated consumer sector, strong domestic growth and resilient financial systems help create opportunities across a broad range of sectors, offering diversified sources of return.
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The Team
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Emery Brewer
Senior Fund Manager (Lead)Emery Brewer, Senior Fund Manager, is the lead manager of the JOHCM Emerging Markets Fund and is a highly experienced emerging markets investor. -
Dr Ivo Kovachev
Senior Fund ManagerDr Ivo Kovachev is Senior Fund Manager of the JOHCM Emerging Markets strategy, alongside Emery Brewer. -
Ladislav Sabo
Fund ManagerLadislav Sabo is a Senior Analyst for the JOHCM Emerging Markets strategy. -
Dalibor Kováč
Fund ManagerDalibor is a fund manager for the JOHCM Global Emerging Markets strategy.
A dual growth philosophy
Investment philosophy
Our approach has been refined and proven through more than three decades of managing emerging market equities, with roots dating back to the early 1990s.
We believe share prices follow operational growth. By combining secular innovators with recovery growth opportunities, we can capture both long-term structural winners and recovery opportunities. Our dual-engine approach aims to create a diversified, risk-aware portfolio that can participate in a range of market environments over time.
What we look for
Bottom-up growth and operating momentum
We seek stocks that beat expectations with strong and accelerating growth. We look for the positive delta.
Strong fundamentals
Assessing the sustainability of future growth and potential risks related to accounting, leverage and corporate governance.
Positive price momentum
Businesses at attractive inflection points, where improving fundamentals are driving market recognition. We seek to identify new ideas early, avoiding overextended stocks.
Investment process
Our process has three steps; it is nimble, clearly defined, time-tested over three decades and applicable across an entire market cycle.
It is designed to identify market inefficiencies and attractive entry points at an early stage. Combining our rigorous bottom-up analysis with our top-down perspective, we assess opportunities daily.
Idea generation
We identify early growth inflection points by combining news, earnings and price momentum. Our triple momentum framework focuses on under-researched companies with positive catalysts, improving earnings expectations and strengthening market momentum before conducting in-depth fundamental analysis.
Fundamental analysis
For companies that pass out initial screens, we conduct rigorous fundamental research to assess the sustainability of durable growth potential and risks to future returns. We evaluate business quality, growth drivers, financial strength and valuation.
Before investment and during the holding period, we place significant emphasis on accounting quality analysis, recognising weaknesses in these areas can undermine long-term returns. Using proprietary screening tools, we can identify red flags and conduct further due diligence where needed.
Portfolio construction and monitoring
Following initial screening, fundamental research and accounting quality checks, positions can be initiated quickly to capture the upside. Our agile approach enables us to act on positive catalysts early, while ongoing monitoring ensures position sizes reflect evolving conviction as fundamentals develop.
Proof of process
By balancing different types of growth (through the dual philosophy combining secular and recovery growth), we can adapt to changing market conditions. This improves performance in rising markets and its resilience in down markets, resulting in lower volatility of returns.
Insights
How can we help?
From our very first conversation to ongoing support, our teams of experts are here to answer your investment needs.
