Global Market Report - Emerging Opportunities?
Jul 28, 2012
While inflationary pressures have increased across some Emerging Market countries, those equity markets could still be volatile and subject to country risk. As these markets have matured, do they still provide an attractive opportunity set for the active manager? Using the Barra Global Equity Model (GEM2) and Barra Single Country models, we examine measures of volatility and dispersion to highlight the scope of the opportunity set and its corresponding risks. By applying these metrics to different attributes of the market, we can examine a range of management styles (fundamental stock selection, country focus, quantitative factor management and timing) and see the potential risks and benefits of each.