Global Frontier Markets

The Caravan Capital approach to the global frontier markets is opportunistic and value-focused.  The Caravan frontier process is oriented from the top-down, utilizing quantitative and qualitative fundamental analysis to actively select countries and companies.  We assess valuations relative to fundamental quality and growth potential, focusing on drivers of the markets' long-term recognition of firm value.  It is Caravan's belief that the weak state of market efficiency present in many frontier markets provides opportunities for experienced, active investors that conduct rigorous fundamental research.  The scarcity of foreign capital and sell-side research in the frontier markets provides particular opportunities, in our view, for the discovery of hidden value.  

The Caravan Capital approach to global frontier markets includes "exotic" frontier markets, defined as those countries excluded from even the frontier market benchmark indices.  While small and illiquid markets, many exotic frontiers tend to offer compellingly low correlations, low valuations, and a weak state of market efficiency.  The approach also employs focused, relational activism to encourage firms to make improvements to reporting, investor relations, and corporate governance with the intent to facilitate the market's discovery of intrinsic value.

 

Caravan manages portfolios using a disciplined portfolio construction process.  Our approach is broadly diversified to take advantage of the breadth of opportunity as well as the risk-mitigating potential of the low correlations present in the frontier markets.  Portfolios are rebalanced actively in an attempt to capture the upside from the excess volatility present in individual frontier markets.

At Caravan, we take the long view.  We believe that the growth and return potential of the frontier markets can be best captured over a long time horizon.  

 

Disclosures:

Caravan Capital Management LLC is an investment advisor registered with the United States Securities and Exchange Commission.  Caravan Capital Management LLC cannot transact business in a state unless appropriately registered or excluded from such registration.  Registration as an investment advisor does not imply a certain level of skill or training. 

Any material or information contained herein is not an offer to sell or to purchase securities, nor a solicitation of an offer to sell or to purchase securities.  No offer or solicitation of a security or investment product will be made without the delivery of an offering memorandum, subscription agreement, and other required documents.  Before making an investment decision, potential investors are advised to carefully read the offering memorandum, the limited partnership agreement, the subscription documents and all other related documents and to consult with their legal, financial, and tax advisors.  

© 2020 by Caravan Capital Management LLC