London-based emerging markets asset manager FPP Asset Management expects emerging markets in general to generate “good returns” in 2011, with China, Hong Kong, Taiwan, Korea and Russia turning in the best performances of the year.
In its latest presentation to investors (entitled “A Winter’s Tale” and featuring a photo of an airplane on a snowy runway), FPP points out that after a strong 2009 (returning 74.5%) and a disastrous 2008 (falling 54.5%), the MSCI Emerging Markets index returned 16.4% in 2010—a respectable rate of return, particularly when compared to the 9.6% performance of the MSCI World Free index.
“Based on our long-term experience and commitment as Fund Managers in Emerging Markets and knowledge of current conditions, backed up by independent research and findings…we suggest that Emerging Markets will continue to generate good returns in 2011,” said FPP.
In addition to its predictions for best EM performance in 2011, FPP said there was a “debt hangover” in the West—although not in emerging markets—but that it is “dissipating;” that higher interest rates are inevitable, but should be welcomed as “a sign of recovery;” and that equity valuations across the world “remain fair” and investors afflicted by “diseased opinion.”
FPP Asset Management focusees on both traditional and alternative investments. It’s long/short vehicles include the FPP Emerging Hedge Fund, the FPP Seven Seas Fund and the FPP Yellow Tiger Greater China Fund.