How to benefit from the emerging Europe sell-off

EMERGING EUROPE

Stefan Herz, portfolio adviser to the Charlemagne Magna Eastern European fund, discusses where the value lies in emerging Europe.

In a re-run of 2008, investors in emerging Europe are again being buffeted by global events. As risk aversion increases, the region’s stock markets are underperforming developed markets while currencies suffer from a flight to the perceived safety of the US dollar. As in 2008, there is insufficient risk differentiation and little appreciation that most of emerging Europe is well placed to weather the storm. The crisis engulfing emerging Europe is once again not of its own making and in most countries of the region macroeconomic fundamentals remain strong. The recent sell-off provides ...