Emerging Markets Consumer Growth
Berkshire Hathaway’s recent investment in Paytm and StoneCo are two examples of the long-run growth potential for emerging market countries. Kara Marciscano discusses a strategy that has the potential to capture growth trends in emerging market consumers and their local economies.
We aspire to be at the forefront of innovative ways to marry the benefits of the ETF structure with goals that are associated with active managers, such as outperforming market cap-weighted indexes over the long run. We call this approach to investing Modern Alpha™.
After several years of middling to poor performance, emerging markets have surged in 2016. Following a long hiatus, the enticing growth potential offered in emerging markets has started to deliver.
Over recent years, allocations to emerging markets were rare. Yet many investors would agree that the growth of the emerging market consumer class, with its huge population advantage over the developed world, could be one of the single most important factors for global economic growth going forward.
Jeremy J Siegel
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Christopher Gannatti began at WisdomTree as a Research Analyst in December 2010, working directly with Jeremy Schwartz, CFA®, Director of Research. In January of 2014, he was promoted to Associate Director of Research where he was responsible to lead different groups of analysts and strategists within the broader Research team at WisdomTree. In February of 2018, Christopher was promoted to Head of Research, Europe, where he will be based out of WisdomTree’s London office and will be responsible for the full WisdomTree research effort within the European market, as well as supporting the UCITs platform globally. Christopher came to WisdomTree from Lord Abbett, where he worked for four and a half years as a Regional Consultant. He received his MBA in Quantitative Finance, Accounting, and Economics from NYU’s Stern School of Business in 2010, and he received his bachelor’s degree from Colgate University in Economics in 2006. Christopher is a holder of the Chartered Financial Analyst designation.
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Tripp Zimmerman, CFA
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Associate Director, Asset Allocation and Modern Alpha
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Associate Director of Capital Markets
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Joseph Tenaglia, CFA
Associate Director, Asset Allocation
Jianing Wu joined WisdomTree as a Research Analyst in October 2018. She is responsible for analyzing market trends and helping support WisdomTree’s research efforts. Previously, Jianing completed internships and projects at Geode Capital, Starwint Capital, and Invesco Great Wall Fund Management with a focus in quantitative research. Jianing received her M.S in Finance from the Massachusetts Institute of Technology. She graduated with honors from Boston College with degrees in Mathematics and Philosophy.
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Associate Director of Modern Alpha
Alejandro Saltiel joined WisdomTree as a Quantitative Research Analyst in May 2017. He is responsible for quantitative research on WisdomTree’s products and global equity markets. Prior to joining WisdomTree, Alejandro worked at HSBC Asset Management’s Mexico City office as Portfolio Manager for multi-asset mutual funds. He started his career working at a boutique hedge fund that specialized on trading options on sector-levered ETFs. Alejandro received his Master’s in Financial Engineering degree from Columbia University in 2017 and a Bachelor’s in Engineering degree from the Instituto Tecnológico Autónomo de México (ITAM) in 2010. He is a holder of the Chartered Financial Analyst designation.
Matt Wagner, CFA
Modern Alpha Analyst
Matt Wagner joined WisdomTree in May 2017 as a member of the Research team. He is responsible for research on WisdomTree’s products and communicating the firm’s views on the markets. Matt started his career at Morgan Stanley, working as an analyst in Treasury Capital Markets from 2015 to 2017 where he focused on unsecured funding planning, execution and risk management. Matt graduated from Boston College in 2015 with a B.A. in International Studies with a concentration in Economics. Matt is a holder of the Chartered Financial Analyst designation.
Investment Strategy Analyst
Brian Manby joined WisdomTree in October 2018 as an Investment Strategy Analyst. He is responsible for assisting in the creation and analysis of WisdomTree’s model portfolios, as well as helping support the firm’s research efforts. Prior to joining WisdomTree, he worked for FactSet Research Systems, Inc. as a Senior Consultant, where he assisted clients in the creation, maintenance and support of FactSet products in the investment management workflow. Brian received a B.A. as a dual major in Economics and Political Science from the University of Connecticut in 2016, and is pursuing the Chartered Financial Analyst designation.
Kara Marciscano, CFA
Quantitative Research Analyst
Over the past few years, some investors have become frustrated with the underperformance of the emerging markets (EM)—especially when compared to the U.S. markets. But there is a subset of the emerging markets, the EM consumers , that may offer a lot to get excited about.
Over the past few years, investors have become frustrated with the underperformance of the emerging markets (EM) —especially when compared to U.S. markets. But if we look at another comparison to the U.S., there may be a lot to get excited about.
In an environment where the EM consumer has commanded a premium, we feel that it is important to caution investors that not all EM consumer indexes are built alike, and some potentially offer better diversification and valuation opportunities than others.
The emerging markets have been among the most battered of asset classes over last three to four years, especially when compared with the performance in the United States. As investors begin to look for unique opportunities to position for a rebound in EM equities, the WT Consumer Growth Index is one such set of unique exposure.
As I highlighted in two previous blog posts, automobile ownership in emerging market countries is expected to see major increases, as more people enter the middle class and see their disposable income rise.