RT Journal Article
SR Electronic
T1 GeoExposure: <em>Understanding European Managers’ Emerging Market Positioning</em>
JF The Journal of Index Investing
FD Institutional Investor Journals
SP 110
OP 114
DO 10.3905/jii.2013.4.3.110
VO 4
IS 3
A1 Mark L. Paris
A1 Vivekananda L. Sondhi
YR 2013
UL https://pm-research.com/content/4/3/110.abstract
AB It is important for investors to assess both their direct and indirect exposures to geographical regions. Even if investment managers are constrained to stocks in the developed markets, they also may have significant exposure to other regions, including emerging markets. An analysis of a company’s revenue sources can help reveal indirect emerging market exposure. In this article, we analyze a universe of Large Cap European equity managers and, through a lens of EM revenue exposure, examine the size, value, forecast growth, and historical performance of their portfolios. We find that, for the period September 2008 through December 2012, managers separated into terciles by percent of EM revenue have noticeable differences in the aforementioned exposures and performance.TOPICS: Portfolio construction, emerging