Since Donald Trump became President-elect of the United States, emerging market stocks are down nearly 7.0%, based on the Morgan Stanley Capital Index. That could indicate that U.S. fund managers will be moving away from emerging economies. If you think so, you will be wrong.
The fact is that a number of global fund managers say they are buying emerging market assets for 2017 after the beating the sector has taken since the U.S. election in November, even though credit rating agencies have a less positive outlook.
One of those moneymen is Michel Del Buono, head of portfolio strategy at Makena Capital Management LLC, who oversees $18 billion across asset classes. He is bullish on emerging markets. According to Reuters, this is where his mind is right now:
“If you’re exposed in the right way and you have a long-term perspective you should keep a significant weighting to emerging markets,” he said.
Del Buono said he favors investments in things like healthcare, retail and for-profit education in places like Nigeria, Indonesia and the United Arab Emirates.
Since Nigeria does not have for-profit universities, the areas Del Buono will be deploying capital are largely healthcare and retail. So, if you want to track the moneymen in Nigeria, get into these two areas.