Emerging and Frontier
Strategies tailored to the unique inefficiencies
of the emerging and frontier equity markets
Caravan Capital is an independent investment management firm specializing in the frontier and emerging equity markets. The firm's investment approach is value-driven and utilizes both top-down and bottom-up analysis to assess the unique opportunities and risks present in early-stage equity markets. The Caravan Team has more than 50 years of combined experience in the frontier and emerging markets.
We assess the world's equity markets along the spectrum of market development. Smaller equity markets are often small either because their economies are underdeveloped, or because the countries themselves are small in terms of land or population. Less developed equity markets are relatively neglected by international investors and sell-side research providers. As such, frontier and emerging markets provide lower valuations, lower correlations to other markets, as well as a lesser degree of market efficiency. We believe that these characteristics provide the opportunity for active investment managers, both to add alpha as well as to mitigate risk.
The frontier and emerging markets exhibit some similar growth drivers as well as some similar risks, but they are not monolithic. Developing countries pursue different paths to economic development. The paths they take have ramifications for their people, their political development, and for the businesses operating there – but also importantly – for the breadth and quality of opportunities created in their equity markets.
Within this spectrum, from the most exotic frontier markets to the larger emerging markets, we customize our investment research and portfolio construction processes to the unique characteristics of the countries in which we invest. We believe that our Team's combined 50 years of experience in these markets allow us to opportunistically pursue value while navigating the challenges across this broad set of geographies.
Select White Papers
"Frontier Markets: A Comparative Analysis." Investments and Wealth Monitor. December, 2018.
"Navigating the Frontier Equity Markets: Implementation Considerations for the Next Generation of Emerging Markets." Co-authored with Mat Lystra of Russell Investments. July, 2015.