Oaktree added the long-only Emerging Markets Equities strategy in 2011, as a step-out from the Emerging Markets Absolute Return strategy1 established in 1998. The launch of the Emerging Markets Equities strategy also followed Oaktree’s selection in 2011 as one of four emerging markets equities managers to Vanguard’s Emerging Markets Select Stock Fund. We believe the inefficiencies inherent in emerging markets present experienced managers with an opportunity to apply advanced investment methods and personal judgment to an arena where they have great potential to increase value for their investors.
Drawing on their extensive experience and industry contacts, portfolio managers Frank Carroll and Tim Jensen seek to earn attractive risk-adjusted returns by investing on a long-only basis in the equities of emerging markets companies in the Asia Pacific region, Latin America, Eastern Europe, the Middle East, Africa and Russia.
The portfolio is constructed to be benchmark-aware to the MSCI Emerging Markets Index Net and is built using a bottom-up, fundamental research process. The portfolio managers also take broader macroeconomic and market conditions into consideration when assessing portfolio risk.
The team has a global presence, with offices in Stamford, CT; Singapore; Hong Kong and London. They also travel extensively to meet with management of potential and current portfolio companies.
1 The Oaktree Emerging Markets Absolute Return strategy was discontinued on September 30, 2018.