Opportunities remain despite recent setbacks in the global capital and commodity markets
Dubai, UAE: With economic growth slowing in China, Standard and Poor's cutting Brazil's credit rating to 'junk' status and oil prices wallow at below US$50 per barrel, investors' portfolio have taken a beating in recent months. However, Dubai-based global alternative asset manager Duet MENA Limited, believe that buying when everyone else is selling is one of the ways to buck the market slump trend.
At the height of the 2008-2010 financial crisis, emerging and frontier markets were the sole bright spots in an otherwise overcast outlook for the global economy. Five years after the crash, a new wave of challenges targeting these markets has entered the scene and is threatening investor confidence across the globe. But Hedi Ben Mlouka, CEO and CIO of Duet MENA Limited, remains positive about investment prospects surrounding emerging and frontier markets.
"Despite a more challenging economic environment dominated by structurally lower commodity prices, Frontier Markets still offer a unique opportunity set for the specialist investor," said Mlouka. "More than 40 out of the 50 fastest growing economies in the world are in frontier countries which also exhibit the most attractive demographics profile with more than 50% of the population under the age of 30."
These markets have for the most part undergone significant structural reforms and are opening up quickly to foreign investors, making them more investable from an international allocator perspective.
"Last but not least, in Frontier Markets, risks are higher, the regulatory environment is more complex and more fluid and detailed information on companies is generally not readily available; all of these factors make the barriers to entry for the average investor very high: and that is exactly where the opportunity is for Duet," he added.
In the coming year, Duet MENA will focus on investment discipline and, hopefully, continued excellent returns for its investors. The key is to focus on secular themes and structural reforms as opposed to commodity driven and cyclical businesses in general.
"We also reassess our investment thesis regularly to potentially adjust our positions and remain close to our portfolio companies to make sure they are executing on the business opportunity as planned. We don't just invest and hope for the best. This is, in a nutshell, the investment discipline that allowed us to deliver in the Frontier Markets returns that are for some of our funds in excess of four times those of the broader equity markets," said Mlouka.
About Duet MENA Limited:
Duet Group is a global alternative asset manager co-founded by Henry Gabay in 2002. As of the 31st August 2015, the Duet Group manages over US$5.5 billion of equity across three business areas: Hedge/Long-Only Funds, Private Equity and Real Estate. Since its inception, the Duet Group has developed an established portfolio of products in areas of growing importance within the investing community, notably within the Emerging and Frontier Markets. Duet Group's investment teams are fully dedicated to their own strategies, and leverage their unique blend of experiences to find value for its investors in all market conditions. Duet Group employs 91 professionals in its offices in London (Headquarters), New York, Dubai, New Delhi, Accra and Cairo. Duet Asset Management Limited is regulated by the FCA, SEC, FSB, and NFA. Duet MENA Limited is regulated by DFSA. Duet Private Equity Limited is regulated by the FCA.
For more information, visit www.duetgroup.net
For media enquiries:
Duet Mena Limited
Tower 1, Office 10, Level 4
Al Fattan Currency House
DIFC, Dubai
UAE
+971 4237 9200
Email: info@duetgroup.net
© Press Release 2015
