Sunday, August 13, 2006

Emerging Market Fund Recommendations?

This is a quick post to see if anyone has any recommendations for emerging market funds, both equities and fixed-income. A nice diversified international fund (either flavor) is welcome as well as long is there is non-trivial (10-30%) emerging market exposure. BRIC countries, other Latin American and Asian markets are tops. Eastern European markets are welcome too. As I mentioned in my first post, I am an asset allocator by nature. (All my esoteric alpha-seeking investments are a small but significant part of my portfolio.) This is the last big gap I have to fill in.

8 comments:

stockdiva said...

I would stay away from emerging markets at this stage in the game. You've missed the boat on this opportunity. If you had asked this question four years ago, you would have made a mint, but most funds are at an all time high. Some of the top funds are starting to show major signs of weakness. In fact most of the emerging market funds started to show signs of decline in early 2006.

Khyron said...

Stockdiva,

Yes, I know. My fund investments are handled from the same way of thinking as William J. O'Neill suggests in "How To Make Money in Stocks". I buy funds for the long term, because if the funds go to zero, we have much bigger problems than the funds going to zero. Ya know?

But it looks like my long bond 108 September put paid off. It was an experiment. Too bad I only had 1. Almost 100% return in about 2 weeks.

Anonymous said...

Okay, whatever you say. Here are my recommendations:

On the equity side I would recommend the Polaris Global Value Fund (PGVFX). It's a no load fund that has only had one down year and it has had consistant performance over the years. This is more of a Global equity fund than an emerging market fund, but its' performance is impressive.

On the bond fund side I would recommend the T. Rowe Price Emerging Markets Bond Fund (PREMX). It's also a no load fund and its' performance this year is above water but not by much. It has only had one down year out of the past 10 years and it also has an above average track record.

Again, do your own due diligence and research the funds before purchasing them. You asked for an opinion so I'm giving you my opinion.

Spencer Hill said...

Depending on how much you have to invest. I would look at ETF's that are trading at a discount to NAV that are country specific that are in emerging markets.

Emerging markets have experienced significant growth in the last few years so not much value there. By buying at discount and holding over time you should get an advantage and a hedge against currency fluctuations.

But always do your own due diligence and find something you can sleep with at night.

stockdiva said...

khyron,

I was the one who gave you the fund recommendations. I forgot to identify myself.

Sorry.

Khyron said...

Stockdiva,

Yes, I figured it was you. I could feel the disdainful look burning through me from here. No problem tho. I have my reasons. Don't worry about it. I consider it an indication that I'm doing something right.

Spencer,

Interesting thought. I hold XLP in my portfolio and it has done ok, positive but not spectacular. Only thing is I lack the funds to go as hardcore ETF as I would like. I'd also prefer not to have to manage the sectors that closely. I just don't have the time. My energy is best used in other ways, methinks.

stockdiva said...

Apparently you took my message the wrong way. I've talked to the previous guy and he's never interpreted my posts as being mean or arrogant. Again, I was just offering my opinion. My apologizes if you interpreted my comment the wrong way.

Khyron said...

Stockdiva,

Its all good. Don't sweat it. No harm, no foul. Consider this though - if emerging market funds are coming off their highs, then wouldn't this be a good time to buy in? Especially since it is part of a diversification and asset allocation plan. AND since, as I mentioned, the idea is to hold the fund and buy on dips. Finally, like I said, if a stock goes to zero, you call it Enron. If a fund goes to zero, you call it Armageddon.

The (new) Alpha Guy still got luv for ya, Diva! ;) You've been a lovely contributor here and I hope you continue to be. Don't let me scare you off. I'm not as mean as I seem. Sometimes.