Category Archives: Kazakhstan

Frontier Markets Opportunities and Risks, Bloomberg Edition

As part of last month’s Bloomberg Dealmakers Summit in London, the following roundtable took place, featuring Timur Issatayev of Verny Capital, Parag Saxena of New Silk Route LLC and Danladi Verheijen of Verod Capital Management. It’s 22 minutes and all worth it, but if you want the single most profound statement for my time, fast-forward to 15:10, when Parag Saxena has the following to say when asked about investment risks in South Asia:

“If you stay away from purely government-granted things you can probably do all right but sometimes that is where the opportunity is so it’s hard. To me the big surprise that I learned in India, having been in the investment business for 31 years and thinking that I have made already most of the mistakes that I was going to make in my investment life, the one that surprised me in India, and I know it’s true in Pakistan and Bangladesh too, is the lack of talent. So when I invest in the U.S., which I continue to do, I know that even for a pretty tough to fill job, in 120 days to 180 days I can fill almost any job. And so typically now at my age, I get resumes from my friends’ children. I used to get them from my friends at one point and now I get them from my friends’ children. And in the US I think it’s going to be hard to actually place them because there is so much talent available for a limited number of jobs. In India, I find myself grabbing every resume because I can hire baristas for somebody that wants a summer internship job, we have a restaurant company and cellular tower company and we need CEOs, so I can hire CEOs for those companies, and everything in between. So the biggest surprise to me, and the opportunity, is training for lower level jobs. And that’s a real unexpected risk, because time is the enemy of internal rate of return and if it’s going to take you more time to fill these slots and you can’t get stuff done, you have a real problem.”

Here’s the video in full:

Roosevelt Investments’ Tim Ramsey likes Nigeria, Pakistan, Kazakhstan and Argentina (sort of)

Worth a few minutes for the commentary. Note his explanation in particular of Argentina–it’s about relativity:

Source link is here.

The Case for Frontier Market Investing

I don’t need any convincing but once in a while it’s a good exercise to review why we think what we think. And if I were in a position of having to convince higher powers to increase a fund’s portfolio allocation in frontier markets, the following is a pretty good list for making the case, culled from Robert Hallberg’s column earlier this week in Seeking Alpha, and the most recent research report from Clear Path Analysis on investing in emerging markets currencies and debt, much of which also applies to frontier markets.

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The Next 5 Emerging Markets To Watch?

As part of the Atlantic Monthly’s sporadic coverage of developing markets, it recently proposed Turkey, Indonesia, Kazakhstan, the DRC and Mexico (with Nigeria as the sixth man coming off the bench) as the next 5 emerging economies to “change the world.” And because I hate websites that force you to click through a different page per item of a list, presumably just to keep you clicking, I am summarizing it all on one page here to make for easier digestion.

Directly from the intro:

“Now that we understand the global hierarchy to be less fixed than it once was, who will rise next? The conditions for a rising power are so complicated and so reliant on outside factors beyond any one country’s control that accurately predicting them would be impossible. Still, some countries seem better positioned and better managed than others.”

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