In comparison to the MSCI Emerging Market Index, the S&P 500 has been on an upward trajectory despite trade wars that have laid emerging markets to waste, particularly in the past month. In addition, hawkishness exhibited by the Federal Reserve’s raising of interest rates and a rising dollar could continue to discourage investments in the U.S. domestically and from abroad.
Related: 4 Reasons to Invest in Emerging Markets
Due Diligence at Davis Advisors
As far as investment strategies for international markets are concerned, Davis Advisors exercises the utmost due diligence when looking at investments in specific corners of the globe. This extends beyond the fundamentals of looking at financials to determine the company’s overall health.
“We’re looking for longevity and experience of course,” said Danton G. Goei, international portfolio manager at Davis Advisors. “We also do due diligence on not only just the company, but we talk to all their competitors’ suppliers and customers.”
By looking at this qualitative data, Davis advisors is able to extract valuable insight into the inner workings of a company that don’t exactly appear on a balance sheet. It provides the impetus for success in investments abroad for their funds, such as the International Fund and Global Fund.
“Just beyond the numbers, it is really building and understanding the ecosystem,” said Goei.
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