New emerging markets fund manager Ox Capital Management (OxCap) has announced the launch of its flagship emerging market equity fund.
Founded in June, OxCap brings together a team of experienced emerging market investors led by Dr Joseph Lai, who was previously lead portfolio manager for Platinum Asset Management’s high performing Platinum Asia Fund. Dr Lai and fellow Principals Douglas Huey and Alan Zhang collectively have more than 50 years’ experience investing in Asian equities. The team has grown to five since being founded, with Kate Goodwin and Siddarth Mehta recently joining the team, bringing a mix of entrepreneurial, operational and corporate finance experience to the team.
OxCap announced today the launch of the Ox Capital Dynamic Emerging Markets Fund (the Fund), in association with Fidante Partners.
The Fund is a concentrated portfolio of high quality, undervalued, well-run companies in Asia ex-Japan and other emerging markets and typically holds 30 to 50 stocks, diversified across countries, sectors and thematic exposures.
The Fund can implement downside protection strategies for investors where it believes that a stock in the portfolio or the market is overvalued.
The Fund aims to provide an absolute return and capital growth over the long term and outperform the MSCI Emerging Markets Net Total Return Index (AUD) Unhedged benchmark after costs over rolling five-year periods.
Dr Lai said the Fund and emerging markets as an asset class represented a significant investment opportunity for global investors who tended to be structurally under-exposed to emerging markets.
“Over 70% of global growth and 60% of the world’s GDP comes from emerging markets, yet it accounts for just 13% of the MSCI ACWI Index. I started Ox Capital Management with a mission to deliver stellar returns for our investors. I have had the privilege and responsibility to manage money for clients for over 17 years investing in emerging markets, and I believe now more than ever that emerging markets are unusually undervalued,” he said.
“OxCap’s investment approach is to identify the immense changes taking place in Asia and other key emerging markets and buy good businesses that are positioned to take advantage of rapid economic growth that will result from these changing dynamics,” he added.