VIKASA challenges the traditional notion of the emerging markets, the BRIC’S view no longer provides maximum value. A new and comprehensive strategy must be embraced to unlock their potential. Emerging markets are often highly regulated and thus access can be restricted. VIKASA’s platforms allow direct access to these alpha driven markets. Our team is dedicated to emerging markets.
Previous conceptions of Emerging Markets have become dependant on the BRICS approach, which highlights 5 Emerging Markets: Brasil, Russia, India, China and South Africa. VIKASA Capital understands this is an antiquated notion and is no longer a viable investment strategy. The allocations of BRICS’s portfolios have become so confused that they cloud the asset class. Emerging Markets funds that concentrate their investment into these countries have become too China-centric, and loose Alpha. The volatility of these markets skews alpha generated by the newer Emerging Markets. With new international tensions brewing with Russia and uncertain economic reforms in China, a new view of Emerging Markets is required.
A new breed has taken shape. The next generation of Emerging Markets has proven themselves on the world stage. Countries like Turkey and Indonesia have built impressive economic foundations that have created tremendous economic growth. New tigers in Asia, such as Vietnam and Cambodia, have huge growth potential. This new generation of emerging markets are an under-allocated source of Alpha. But the real engine of the asset class is India. India stands poised for growth as the ideal investment destination outside the United States.
Responsible portfolio construction demands a re-calibration. The world economy has changed. New markets are impacting the world and we need new models. VIKASA Capital believes in seeking alpha from this new generation of Emerging Markets. While the BRICS still remain important in the world economy, we must also make allocations for a new generation of Emerging Markets.