EM Hard Currency Debt

The Emerging Markets Hard Currency Debt Strategy aims to outperform the JP Morgan Hard Currency (EMBI GD) Index by at least 1.00% p.a. (gross) and produce a long term positive total return. It is managed by a talented, highly experienced team of five investors and one dedicated trader. The team also leverage TT’s wider ecosystem consisting of twelve EM Equity experts, five traders and sixteen additional investment professionals. 

scrollscroll

Emerging Markets Hard Currency Debt

EM Debt as an asset class has grown and matured over the years, with EM economic fundamentals improving markedly. In many cases, fundamentals are akin to – or even better than – those in Developed Markets, meaning the asset class is becoming increasingly mainstream. Against this backdrop, access to information has proliferated and Emerging Markets have become more efficient, meaning outperformance based solely on fundamental analysis is increasingly challenging.

In our view, this new paradigm suits truly active, nimble and contrarian processes that focus on overlooked, mispriced areas of the market. With this shifting backdrop in mind, we built our EM Debt process around a number of key convictions and areas of differentiation:

  • We do not treat EM Debt as a homogenous asset class, but rather a mosaic of sub-asset classes with different alpha drivers and catalysts.
  • We are non-regional in our approach. Our strategies are truly active and global, rather than simply representing passive stacking of regional strategies.

  • We are value-based contrarian investors.
  • We focus on overlooked, mispriced and under-researched markets and engage in selective high-conviction trades.
  • We rely on a scenario-assessment and odds rather than clearcut directional views. Instead of believing that we have more accurate macro data or forecasts than the wider market, we study the consensus and positioning, aiming to identify behavioural biases or market ‘blind spots’, where certain scenarios are overlooked because of entrenched beliefs.
  • We rigorously separate alpha from beta, aiming to focus on pure idiosyncratic alpha trades. These alpha trades are clearly identified in the portfolios, with sponsorship and accountability.
Read more

Get in touch

Call us on +44 20 7509 1000, email , or sign up below to receive regular investment updates and insight about products that interest you.

Sign up now