Top fund manager reveals his favourite emerging markets22 November 2017
Leading growth investor Sunil Thakor talks about the top two emerging market investment destinations on his radar.
Growth investors, like Sunil Thakor, Managing Director, Sands Capital Asset Management, USA, have a natural attraction to emerging markets because the emerging world is growing much faster than the developed world. At the recent Investec Wealth Forum in Johannesburg, Thakor revealed the top two emerging markets in his sights.
“One of our favourite parts of the world is India,” says Thakor. The country’s attractive young demographic profile and the great deal of positive structural reform going on in the country is “providing a great foundation for accelerating GDP growth,” says Thakor, who pointed to an example of India’s booming two-wheeler industry in his speech.
“China’s a mixed bag”
“On the surface, it looks like China’s growth is slowing but if you peel back the onion just a little bit underneath you have a vibrant consumer economy that’s growing quite rapidly,” says Thakor.
In China it is ecommerce in particular that has caught Thakor’s eye. “China has the largest and fastest growing ecommerce market in the world. Some might think of a business like Alibaba as an ecommerce company, but we think of it almost as the operating system for retail in the country, with many retailers plugging into Alibaba’s system to sell their goods.” This ties into Thakor’s investment philosophy of owning the companies who hold the key enabling technologies in an industry.