Three Pitfalls in Investing in Emerging Markets

A core tenet of PanAgora’s Stock Selector Equity team’s philosophy is our belief in quantifying fundamental insights. Specifically, we seek to understand how businesses work by using sophisticated quantitative techniques and unique data sets to systematically analyze, select, and invest in individual stocks. PanAgora has developed proprietary quantitative models and factors that serve to analyze the fundamental strengths and weaknesses of each company. This is done within a specific investable universe, on a bottom-up basis, by employing insights similar to those of a more traditional fundamental analyst, while leveraging the breadth and speed of quantitative techniques. We believe investment opportunities exist because many investors lack the ability to identify and evaluate drivers of companies’ success with sufficient breadth and speed. As a result, the prospects of a company’s likely success, or failure, are often mispriced by market participants. PanAgora has been implementing this philosophy for nearly 25 years, initially managing U.S. equities then expanding into global equities, including emerging markets (EM).