By Gustavo Medeiros, Ben Underhill
The Emerging View

The case for emerging market small cap equities

EM small caps are assumed to be the risky cousin of US small caps. The data says otherwise: nearly nine in ten are profitable, on half the forward multiple of the Russell 2000. We make the case for the asset class.

Subscribe to our insights

Subscribe and get notified as soon as we publish our content

The latest insights from our categories

Weekly investor research

Oil relief welcome before Wednesday’s FOMC

After 13 consecutive nights of strikes, the US paused its attack on Iran over the weekend, welcome relief ahead of Wednesday's FOMC. Elsewhere, Samsung and SK Hynix signed USD 950bn of US supply deals and Bank Indonesia's governor resigned.
Weekly investor research

The arrival of Kimi K3 tests investors’ faith in Jevons’ Paradox

Chinese open-weight model Kimi K3 raises questions over AI lab monetisation, testing investors’ faith in Jevons’ Paradox. The Korean memory stock unwind extends, US CPI turns negative and the Bank of Korea hikes for the first time in three years.

Latest Insights

Weekly investor research

Switching the focus: diverging policy, with one eye on diplomacy

The US Federal Reserve (Fed) pauses but remains hawkish, and the European Central Bank (ECB) hikes 0.25% and signals more hikes. Conversely in Asia, the Bank of Japan (BOJ) remains dovish despite elevated core consumer price index (CPI) inflation, and...
Video

India takes centre stage

Rashi Talwar Bhatia, Portfolio Manager for India Equity, and Gustavo Medeiros, Ashmore’s Global Head of Research discuss the opportunities present in the India Equity universe and their outlook for the second half of 2023 and beyond. 
Weekly investor research

Dancing to the Fed’s rate hike ‘skip’

The benign macroeconomic backdrop and the US Federal Reserve (Fed) inclination to ‘skip’ this month’s rate hike are music to investors’ ears. Flows into credit products and Emerging Markets (EM) bond issuance have benefitted from improved sentiment.
Weekly investor research

A welcome lull in policy uncertainty

In Türkiye, President Erdogan throws an olive branch to the market by appointing an old friend. OPEC+ oil production cuts cause barely a ripple on Brent crude prices, as global inflationary pressures show signs of abating. In the United States (US)...
Live at the Sub-ICs

The semiconductor cycle is dead, long live the super cycle!

The health of developed market (DM) economies is in doubt with bank profitability stresses highlighting the impact of tight financial conditions on the real economy. This is prompting some to question whether enough downside risk is priced in DM equity...
Video

Small (EM) is beautiful

Patrick Cadell, Portfolio Manager for Emerging Markets Small Cap Equity and Gustavo Medeiros, Ashmore’s Head of Research discuss the opportunities present in the Emerging Market Small Cap Equity universe and the outlook for the second half of 2023 and...
Weekly investor research

EM elections: good result in Thailand, poor results in Türkiye

It was a good outcome in the Thai presidential elections in terms of fostering liberal economic reforms. In Türkiye, Erdogan won most votes but fell short of the 50% mark, leading to a 28 May run-off. Argentina’s inflation rose further. In Colombia, ...
Weekly investor research

We wish all central banks were steady as Bank Negara Malaysia

The US Federal Reserve (Fed) and the European Central Bank (ECB) hiked policy rates by 25 basis points (bps), in line with consensus. Bank Negara Malaysia also hiked by 25bps, but its track record suggests a much better management of macro stability...
Weekly investor research

Let’s talk about politics

Weak leading manufacturing indicators globally. Another bank bites the dust in the United States (US), where negotiations over raising the debt ceiling call for political compromise. Good news from Indonesian politics. Gustavo Petro reshuffled his...
Video

'EM in 10' update - May 2023

Gustavo Medeiros, Ashmore’s Head of Research, answers some timely questions about recent events and performance in Emerging Markets for our 'EM in 10' monthly video review.
Weekly investor research

EM local assets outperform on weak USD

Emerging Market (EM) stocks and local bonds outperformed last week due to a weaker US dollar, better-than-expected economic data from China, and lower inflation in Brazil and India. Argentina’s inflation increased further, partially due to the drought...