According to a recent Bloomberg report, emerging markets are anticipated to heat up in a big way this year, building on the $14 trillion they’ve made for investors over the past 10 years. The report was based on a survey of global investors, strategists, and traders, who conveyed their expectation that emerging markets will outperform developed markets, with Asia in particular looking promising. The total wealth in emerging-market stocks and bonds now exceeds $27 trillion, bigger than the economies of the U.S. and Germany combined.
Emerging market equities are always on the radar of alpha seekers – but they represent a highly nuanced area for allocators, with countless variables including sometimes less than pristine data to inform decisions. Are quantitative strategies especially effective at tackling the challenge of emerging markets? That may very well be the case, as this report reveals.