O’Shaughnessy Asset Management examines why emerging market equities may offer attractive opportunities through a systematic approach built on value, dividend yield, and price momentum. It argues these factors have historically been even more effective in emerging markets, where lower analyst coverage can create pricing inefficiencies.
Emerging Market Opportunities
O’Shaughnessy Asset Management
Patrick O’Shaughnessy, Ashvin Viswanathan
Article
1 Pages
Key Takeaways
Growing Economic Weight: Emerging and developing economies accounted for 55% of global GDP versus 31% in 1990, while emerging market stocks represented 11.6% of the MSCI All Country World Index.
Broad Investment Universe: The strategy evaluates roughly 1,500 companies across 56 countries, with nearly 90% of total market capitalization concentrated in the largest 15 countries.
Valuation Advantage: Emerging markets traded at a 15.59 CAPE versus 22.83 for U.S. equities, supporting the paper's case that cheaper valuations may improve long term return potential.
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