Portfolio Manager
• Podcast
Emerging markets, concentration risk and the evolution of quantitative investing
Emerging markets are often viewed through the lens of geopolitics, growth and valuations. But for quantitative investors, another question matters just as much: how do systematic models need to evolve as markets themselves change?
Authors
Client Portfolio Manager
In this podcast episode, we explore how quant investors approach emerging market equities, why the asset class remains structurally under-owned, and how innovation in signals, data and portfolio construction can help navigate a more concentrated, more complex investment landscape.
Emerging markets remain under-owned, but the opportunity set is broad
Despite renewed investor interest and strong recent performance, EM equities remain structurally under-owned. For quant investors, the breadth of the universe creates opportunities across thousands of stocks, not just the largest index names.Concentration is a challenge but not the whole story
Technology has become a much larger part of emerging market indices, with a handful of names carrying significant weight. In this episode, we make the point that not all tech stocks are the same, and that a broad quant universe can help investors look beyond the dominant index names.Quant models need to evolve, not stand still
Quant is inherently based on historical data, but the model is not static. Innovation in signals, alternative data, natural language processing and machine learning has helped our approach adapt over time.
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