Fidelity Emerging Markets Fund portfolio manager Sam Polyak discusses the types of businesses he is looking for in emerging markets and where he is finding areas of opportunity. Sam is known for his GARP (growth at a reasonable price) investment style and believes stocks follow earnings. It is stock selection that drives his process, which leads to a portfolio that he keeps to around 50 holdings. Sam has strict investment “guardrails” in place for the Fund (country-, sector- and stock-specific) to increase diversification and boost strong risk-adjusted returns. Sam notes that Fidelity has the advantage of a strong research team based in Hong Kong that is always on the ground meeting companies, suppliers, management and consumers, but what differentiates Fidelity most is a focus on corporate governance. Fidelity’s corporate governance team, based in Bangalore, completes analysis of all potential investments, performing background checks and making deep dives to avoid possible pitfalls.
Recorded on June 18, 2020.