The Road Less Traveled: A Different Way to Invest in Frontier Markets
Unconstrained and Disciplined
Investment opportunity in frontier markets may occur in any of five regions (Africa, Asia, Caribbean/Latin America, Eastern Europe and the Middle East) and in more than 60 different markets. Transaction costs can run high, liquidity conditions can be complex, and business practices are anything but standard. The ratio of participation between local and outside investors varies widely from country to country. As a result, the characteristics of individual markets and stocks are colored by market-specific human behavior and trading nuances.
We add value through country analysis, security analysis and portfolio construction. We focus on businesses that are integrated to the development of frontier market consumers. Investment candidates must offer quality products and service and also have good growth prospects, solid management, and transparent accounting practices.
In this pursuit, there is no substitute for direct contact with company managements, field research, and hands-on confirmation. There is no standard form of analysis. Sometimes the greatest opportunities lie in places that are far from comfort, but have the potential for sweeping change. Our passports bear stamps documenting frequent travel to some of the world's least developed but most interesting locations. Likewise, our research dossiers bulge with customized financial analyses, interview notes, and qualitative reporting source material.
All of this is essential to an investment strategy that seeks the best opportunities not the emulation of a benchmark. Our strictly opportunistic style means we won't drift into emerging or developed market stocks when more challenging conditions arise.
With more than 40 years of experience in researching and analyzing the global marketplace and identifying growth trends and market opportunities, as well as more than a decade of exclusive frontier markets focus, we believe our philosophy and process will continue to deliver unique, investable insights and compelling outcomes from the frontier.
At Frontier Market Asset Management we dutifully follow core tenets and apply rigorous disciplines.
- We believe value provides protection and profit in frontier stock markets.
- Value must be complemented by sound businesses - we look for quality companies at reasonable prices (“QUARP”).
- Quality is defined by good growth prospects, competitive products and services, solid management, and transparent accounting practices.
- We look for companies that Graham and Dodd would like for their value and Warren Buffett would like for their growth.