YouSaid · the spoken record

Christine Phillpotts

lines on the record: 80
first: 2025-02-13
most recent: 2025-02-13
sittings or episodes: 1
sources: podcast

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“Have an agenda, a textbook, you're learning things, you're doing the test, you get an A plus, and then you kind of move on, right? In the world of investing is just so much more nebulous. And so it just requires you to stretch and have more creativity than just expecting things to come at you in a cleaner fashion, which to be honest was my experience in US large cap tech investing where data was abundant and widely available and much more efficient. But even with that type of investing, I think thinking more along this being creative and putting the mosaic together more proactively is probably a lesson that I would want to tell myself, my 20-year-old self.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“I would say that the concept of it goes back to The importance of the mosaic theory, and particularly in less efficient markets like emerging markets, all the data is not going to come in a neat package. And so needing to be creative with how you get information, it's almost like being a detective in some ways. How do you get information? How do you piece the pieces of the puzzle together? How do you think outside of the box? Because oftentimes I think when, you know, when I was in school,”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Required to kind of step out of comfort zones in terms of cultural differences, in terms of other dynamics, just being comfortable or embracing that.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“I try to tell people who are starting this business you need to let go of that and just kind of understand you will be wrong. Ideally, you want to be right slightly more times than you're wrong. And when you're right, ideally the upside is greater than the downside when you're wrong. But that's the game we're trying to play. We're not shooting for 100%. So I would say that's the biggest piece of advice. I would say the other broader advice is to, as someone put it earlier in my career, you know, lead with a yes. And so if there's projects that come up, if there's new opportunities, not overanalyzing or overthinking, well, am I 100% ready to do this? Just say yes, and then you'll figure it out. And I think that's where you grow. That's where you learn. That's where you can really stretch yourself and kind of step out of your comfort zone, particularly in emerging markets where there's a lot of...”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Well Exactly. But that's been Yeah, so I think it relates to what we're just talking about about not being a perfectionist because as an investor you are knocking out of the park if you're right 60% of the time. Even that's a high level, right? You're going to be wrong a lot. particularly in listed equities like You know whether you're adding or detracting value on a real time basis. And so letting go of the idea that, and I think sometimes young people feel this pressure when they start in this business that, you know, I need to get it right 100% of the time. And that leads to a lot of risk aversion as a result because they're afraid of making a mistake. They're afraid of making the wrong call. And that could help stymie decision making and decisiveness”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Place in Palm Beach, so deal with some trade offs. Right, trade-offs, exactly. And like, what do you prioritize? Because you're not going to get everything. Right. That's right. So what are we trying to solve for?”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Your point, well, I want this and we want that, and this is like our perfect dream home, and it needs to be two blocks away from the school. And so this is literally an active conversation as we enter 2025. Like at some point, we just need to do it. It's not going to be perfect. And so for me, I think in terms of opportunity cost, right? So what are we giving up? By not doing this now And which is what you alluded to as well in terms of pricing, appreciation, et cetera. And also, just understanding that there is no perfect anything. It's trade offs.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“I am still managing it. So I'm still going to be. I'm always working on it. And so, I mean, it's actually interesting talking about real estate. I mean, as a side note, my husband and I have been talking, we live in Brooklyn now. We've been talking about moving closer to our kids' school, which is on the upper east side, to optimize the commute, et cetera, et cetera. We've been talking about this for maybe six years now.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“What's the basis for that thought? What's the basis for the thinking? What are the incentives? And how those could evolve. And my friends who work and are based in China, different individuals separately have told me that he's probably the top Westerner who has the best understanding of Chinese politics today and of China. And so I take their word for it that he has a lot of good insights.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“It really resonated with me to kind of hear that message. And I actually find myself referring back to it in my personal and professional life, that, you know what, the obstacles are a good thing and you learn from them. And that's how you become stronger. And he just points to so many different examples from history, philosophy, current events that really ties and brings to life that concept. So it's a book I really, really enjoyed. And what I'm reading right now, I'm kind of 25% of the way in is Angi Ping, written by Kevin Rudd, who's the former”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“That really I found to be an incredible book because it essentially talks about how obstacles, challenges, problems are not things to be avoided, but embraced and sought after, which seems very counterintuitive because we're constantly trying to optimize our professional and personal lives to avoid stumbling blocks. And this is saying, no, embrace the stumbling blocks because that's ultimately how you learn. And for me in particular as a recovering perfectionist.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“I know. I want to thank everyone, but I've just been very fortunate to have incredible mentors still in my life. And I just hope that I can pay it forward for that next generation in the process of mentoring kind of more junior talent to, again, try to pay it forward.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Glad you gave me that advice because that really was the starting point of my career in securities analysis. You know, other individuals include Professor Andre Parold, who was my finance professor at HBS, who I'm still in touch with. He's been a really great advisor and mentor to me and really has helped counsel me through different stages of my career. And again, I feel bad because there's a lot of people I'm not naming, but there's just been, you know,”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“And so I've been lucky to have incredible relationships in both dimensions. People I'd call out specifically, I mean, there's a lot there. There are a lot of people who have been very helpful. But I would say if I think about my JP Morgan days, you know, particularly earlier on at JP Morgan, individuals like Kher, who was in equities analyst, now he's actually in fixed income at JPMorgan Asset Management. Really, when I was just a college student that didn't know anything about investment management, really took me under her wing. And really encouraged me to actually pursue credit research before equity research because there's no opening in equity research. And she said, you know what? Credit research, I know that's not what you want to do right now. But this will help you build the skill set that you will need in equity research in terms of assessing companies, et cetera.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah. So, I've been tremendously lucky that over the course of my career, I've had incredible mentors and also sponsors. And I like to put the point on the sponsors piece because I like to think that mentors get you into the building, but sponsors put you on the express elevator to the top. And so they're the ones who are pounding the table for you when you're not there.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“It's That broke It's fascinating to me too because it's also just part of this surge of the globalization of Korean culture, right? Whether it's K-pop in movies, television, even food is cosmetics. So it's really interesting to think, to put squid games in the context of this huge resurgence in Korean culture globalization, which quite frankly, I think people wouldn't have predicted a decade ago. So it's really interesting.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“And what I love about the show, it's, I mean, it's the typical reality show where there's drama and all this other stuff. But what I love about it is because they're actually working, there's a lot of kind of managerial lessons of leadership, the relationship between the captain and the boatswain, the relationship between different departments, like the interior versus the exterior of the boat, hiring and firing decisions. There's a lot there that I find to be absolutely fascinating. And beyond that, they're in mega yachts in incredible locations around the world. So”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“No, no. Below deck is literally a reality show on Bravo. It's the only reality show that I watch, but it's basically about crew that work on yachts.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“So it's interesting. I tend to, in terms of streaming and TV, I tend to lean towards dystopian scripted dramas. So think squid game. Black mirror three body problem. I love those shows.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Fund exactly so the fund has experience from China to Tanzania to Peru to Ukraine. I mean, they've worked in, they've worked not only in emerging and frontier markets, but I would call horizon markets, which are kind of the level, I guess, below frontier markets. They've worked in really challenging but interesting places. And so it's a fun that even though I recently stepped off the board after a number of years, I have a tremendous amount of respect for the work that they do.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, absolutely. So I recently stepped off of the board, but I had been on the board for a number of years. And the CF fund is an impact investing fund that actually I had a chance to co-invest with and work alongside when I was at Grassroots Business Fund. So it's a fund I'm very familiar with that really focuses on private equity investing among small and mid-sized companies as a tool of grassroots bottoms-up economic development.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“He's incredible. As I mentioned, I've been following her since I was a junior analyst at JPMorgan Asset Management, getting to work with her. And John Rogers has been just unbelievable and incredible. And one thing I think about Melody is that he is really funny, very down to earth. I mean, I was surprised how down to earth she is and just very passionate and diligent about her work. And so, you know, the fact that she is out there actively advocating for and fundraising for our emerging markets strategy, I'm just so incredibly grateful for, but it just shows that level of focus and dedication and the fact that Melody can do that because we are a firm that is focused and not trying to be all things to all people. So that's just been a really incredible and inspiring experience.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Exactly. So it's just a different structure and a different model. But I think with this model, and I see it with our team, it's clear. We've always been of extremely hardworking, diligent, motivated team, but it got kicked up a thousand notches when joining Ariel. And so it's just incredible case study in what strong alignment of interests can do in terms of just shaping your day-to-day behavior and how you interact at work and ultimately how aligned you are with the clients you're investing money for.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“When I owned chairs in Ariel as a portfolio manager in the emerging markets division, I can move the needle of that broader aerial share price in a way that is hard to do when you're at a $600 billion or $1 trillion asset management firm where if you get equity in that company, your contribution just mathematically. Is a lot lower”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“So, just as I, as an investor, focus on alignment of interest with the companies I'm investing in and with the countries we're investing in, I think our clients are equally asking similar questions of what is the alignment of interest with the investment managers I do business with. And so with that statistic, it's very clear that at Ariel there is that strong level of alignment. Not only do the aerial employees, a majority of aerial employees compensation is tied to stock. Also tied to the performance of the strategies you're responsible for managing. So we're eating our cooking. And at a firm level, because it's such a focused firm,”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“That are we think heading in the wrong direction, but ultimately the country overweights and underweights are really driven by that stock selection approach.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“We think there's just a lot of really great opportunities in the market. And so we start with that bottoms up approach where we're looking for those opportunities that can deliver that. And our investment philosophy is really anchored around value with a catalyst. So we're value investors, valuations and price matter, but it's not the only criteria. We also want to make sure that we're focused on companies where there's a stabilization and an inflection point at hand in the underlying business momentum. And we think that discipline focusing on value with a catalyst helps make sure we're focused on the value opportunities as opposed to the value traps. And so with that lens in mind, we're picking stocks that meet that criteria. And ultimately, as I mentioned, we can lean into or maybe put higher focus on countries where we think the top-down environment is fruitful and lean out of countries.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Yes, it's really a bottoms up approach. So ultimately, we're looking for stocks that we think can deliver meaningful upside. So today, for example, we're not going to invest in a new opportunity that doesn't give us at least 30% absolute upside in dollar terms.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“You can get growth at extremely compelling valuations. India is not one of those markets, in our opinion, but there are plenty of markets that fit that criteria.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“And we think it's a really interesting time in the emerging markets universe because we think it's one of the few opportunities I've seen in the last few decades where you don't have to choose between value and growth”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“We think it's priced to perfection. And so for us as value investors, we prefer to invest in a market like Southeast Asia, which has similarly attractive economic growth, 6% to 7% real GDP growth over the next few years at a fraction of the multiple. More it's like Vietnam and Philippines are trading at 10 to 11 times. That's what I was going to say.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Absolutely. So, India has been the standout outperformer within emerging markets. I think that it's a market that will continue to have a strong. That started with the rise to power of Modi, who implemented a number of reforms that really helped unlock economic growth. We see the growth being powered by infrastructure investments, which will unleash some productivity improvement, by consumer, by credit growth. So there's a lot to like with the India economic story. The challenge is that we think that's already priced in to the equity markets. So the market trades above 20 times forward PE.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, so it's interesting is the impetus for launching that strategy, which we launched a month after our emerging markets value strategy, was because several allocators indicated that they had an interest in an ex-China strategy, not because they don't want to invest in China. But because they already have dedicated China allocations, China is a very large and inefficient market where allocators, some allocators decide to invest in local managers and have dedicated China allocations. So for those managers, some of them have decided, you know what, I want my global emerging markets equities manager to focus on everything else outside of China, to not necessarily double up my China exposure. But it is not to date, has not been a reflection of a desire to not invest in China.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“It's been incredible. I think going in, we clearly had high expectations going in, or else we wouldn't have made the move. But our experience, there's been a lot of upside surprise, to use the term of an investor relative to the already high original expectations. So it's been incredible. I think the support we've received from the organization has been phenomenal. And again, I'm talking about from the leadership on throughout the organization. Because ultimately we are the fourth strategy. We're not one of 200 strategies. And so what also makes it a very exciting opportunity and it really scratches my entrepreneurial itch is that we are really able to have a meaningful impact on the firm. We're not a drop in the bucket. So, if we succeed, which I know we will, we can really move the needle.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“That's very different than other firms, particularly larger asset management firms, where there's often pressure to add more and more new strategies in a much more diversified fashion. And so I think the focus on value investing, the discipline to really just focus on expanding and adding strategies where it's a fit with the culture and the investment philosophy of the firm is really attractive. And for us as a new team, their longer-term horizon is also attractive because they're thinking about emerging markets in the long haul. They're not saying, okay, we need this to work after six months. They're thinking about building this business from a longer-term horizon, which again, as a team was extremely attractive for us.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, that's one of the many elements that made joining Ariel so incredibly attractive. First of all, in terms of their investment philosophy, it really is across all of the investment strategies at Ariel having a fundamental bottom-up value-oriented style that really thinks about the long term. So we're not looking to call quarters. We're really thinking about the longer-term trajectory of a business and owning businesses that are trading at meaningful discounts to their intrinsic value. We're able to look at that longer-term horizon and take advantage of market dislocations that often focus too much on short-term noise as opposed to long-term trajectory. And we take advantage of that discrepancy. But it not only reflects how they invest, it also reflects how Ariel thinks about building the business and growing the business. So we were strategy number four.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“And to really launch a new business with the backing of such an established and well respected platform like Ariel. And I had been following Ariel and John Rogers and Melody Hobson since my analyst days at JP Morgan. So I was particularly excited to join a firm just given the really strong track record and reputation.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, absolutely. So Ariel was seeking to launch a dedicated emerging market equity strategy. Ariel has a 40 plus year history of value investing in equity markets. Starting in the small and mid cap segments in the US. The firm launched an international and global strategies about 12 years ago. And so merging markets was actually a natural extension as aerial focuses on investing in the less efficient parts of global capital markets. Because if you imagine US small cap is also relatively less efficient compared in the context of the US equity market. Our team had an opportunity to join to help build the emerging markets business at Ariel. And it's a really extremely exciting opportunity, as I mentioned, our team has been working together for no less than a decade. We've had an investment process, an investment style that has been deployed for decades. And to me, personally, it was really exciting to have the opportunity to be an intrapreneur.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“I think the other standpoint to think about is in terms of flows, the US dollar is at close to 20 year highs in a period where the US deficit running at 6% arguably is going to widen at a period where rate policy is TBD. Our thesis is not premised on the US dollar massively weakening, but we think that there's increasing probabilities of dollar weakness given the starting point that we're in. And that from a flow standpoint should be an additional upside driver to flows into emerging markets.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“The SPs above 20 times. So the discounts from a price to book standpoint is over 60%. Price to earnings, about 40% discount. That's the widest discount we've seen ever. But key valuations are necessary, but not sufficient condition for an opportunity to be attractive, right? You also want to see what is the catalyst to that valuation discount closing. And we see several of those catalysts in emerging markets. One is emerging markets earnings this year and for the next few years are expected to accelerate EPS growth for some of the reasons I mentioned earlier is expected to accelerate and be higher than the arguably lofty EPS growth expectations out of the US.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Absolutely. So, if you look at the history of EM equity performance relative to U.S. equities performance, there's a clear pattern over the last couple of decades, a very long cycles of outperformance and underperformance. And clearly where in a very long cycle of over a decade of EM and quite frankly, anything outside the US underperforming the US. The reason why I think now is the wrong time to capitulate is for a couple of reasons. One is if you think about EM equity valuations versus the S&P, the EM index is trading at 10 to 11 times forward PE.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and I think just going to the big tech companies today, they are now proactively managing how they engage with merchants and making sure, for example, that the splits of value is, I would argue, more favorable to merchants today than it was during the period of the crackdowns. There's also an element of making sure that the entrepreneurs are not outshining party officials. And so there's a lot of different elements that are being explicitly taken into account that one needs to be aware of as we think about, again, what are some potential risk and pressure points? How do we mitigate them? And ultimately, we're looking to build a 60 stock portfolio across 20 plus different markets. So we don't have to be in all countries, and we certainly don't have to be in all sectors if we think that misalignment exists.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“But the tension was there. And so I would argue based on our framework of really trying to understand what are the problems the government's looking to solve and lead into the companies that could be solutions to those problems as opposed to the companies that are viewed as obstacles to solving those problems is a way to reduce the risk from regulatory intervention.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Yeah, and I think that goes back to this idea of trying to understand the incentive structures of the government, having a view on what they're looking to achieve and not getting in the way. So to use the example of the tech crackdown and I'll extend that to also the education sector crackdown that preceded it. He ping had been, I would argue, pretty clear on some of the issues he had with private sector, with private education, with how tech companies had evolved and the role, the disproportionate role they were playing in the economy and the relationship with merchants. And ultimately some of the concerns around common prosperity or that going against the common prosperity agenda. And so I think there was that tension already in place. It was a surprise about how the government decided to go about resolving that tension.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Is going to actually exceed that GDP growth because of some of the behaviors I mentioned of a steep acceleration in share repurchases, more judicious use of capital, exiting non-core businesses, redeploying that in higher incremental returns generating ventures. And so the relationship between EPS growth and GDP growth in many cases there's a strong correlation, but in other cases you really need to pay attention to the company's specific drivers for that EPS growth and free cash flow generation because that's ultimately what determines share price moves, not overall GDP growth.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“I think that's a really critical point, specifically with China. So as you pointed out, if you look at the history over decades, despite very strong GDP growth, EPS growth lagged that GDP growth, partly because of management decision-making, equity issuance, and capital allocation decisions. We're starting to see the reverse now happen where GDP growth is slowing and it's never going to match what the GDP growth has been like for the last decades. But EPS growth”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“So, even though demand has declined, new starts has declined even further. In the latest data, we're saying for secondary prices and primary prices, they're still in decline, but the level of decline is lower than it had been. So we think the evidence indicates that when looking at cycles, looking at that second derivative tends to be more correlated with how equity prices perform as opposed to focusing just on the absolute levels.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“That can generate double digit earnings growth and that are returning more capital to shareholders that are actually improving their capital allocation for the first time in decades that is not being reflected in valuations. From a top-down standpoint, even though the macroeconomic situation in China is challenged, we're not debating that. For us, we're less interested in the absolute level and more in the second derivative. So for example, for the real estate sector, what is the directionality of inventories? There's still too much inventory, but is it going up or is it going down? And we're seeing evidence of inventories declining. Just as an example, new starts have declined over 65% from the peak.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“So we think the opportunity in China today is meaningful, largest country weight in our portfolio. It's about 30% of our portfolio today. And we think that the opportunities are very attractive. I think there's a couple of reasons for that. And by the way, we didn't always have such a large weight in China. For many years, we were underweight China. But we moved to an overweight position last year in large part because from a bottoms-up standpoint, we were seeing companies that started trading at single digit multiples, so six to eight times forward PE.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source
“Then you may be able to get on Zoom or even via text. And even doing site visits, right, going to the malls, visiting real estate sites, going to the auto manufacturing plants, visiting battery plants really gives you a more concrete sense of what is occurring. And to your point, what is beneath the headlines and what the market could be missing.”
2025-02-13 · Masters in Business · Christine Phillpotts on Investing in Emerging Markets · IDENTIFIED FROM THE TRANSCRIPT · source