Global investors have overlooked these top tips in emerging markets
Chris Tennant, co-portfolio manager of Fidelity Emerging Markets, picks three favourites in emerging markets

Fidelity Emerging Markets Limited (FEML) makes use of an extended toolkit: the ability to increase gross exposure; to take both long and short positions in stocks; and to generate additional income and manage risk through options.
By scouring the breadth of the market-cap spectrum for ideas and making use of our excellent team of global analysts, we identify overlooked companies across regions and industries.
Here are three stocks we are especially excited about.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Emerging markets: A Latin American bargain
Inter & Co (Nasdaq: INTR) is the holding company for Banco Inter, a Brazilian digital bank and super-app that has started to gain significant scale. With room for further fragmentation across retail banking in Brazil, banks such as Inter, which have strong funding dynamics and have not yet reached their maximum potential market share, stand to benefit. Trading on a price-to-book-value ratio of around 1.3, it’s an example of a great business in Latin America where the share price has been depressed by weak sentiment.
While the fiscal and interest-rate backdrop in Brazil has deteriorated, the broader economic picture is more positive, with unemployment at decade lows, GDP growth robust and credit quality positive. The impact that higher rates will have on Inter’s fundamentals is limited. We expect net interest margins to keep expanding and the cost of risk to remain benign given a tight labour market. All this creates an auspicious backdrop for Inter, which enjoys a strong fundamental position with a great outlook for future profitability.
Buenaventura (NYSE: BVN) is a Peruvian gold and copper miner. The share price has suffered as local pension funds have sold equities to fund large outflows following reforms that allow investors to access their pensions early. However, this obscures a positive fundamental backdrop for the group, which has delivered strong operational performance and upgraded guidance, something that is relatively rare in mining.
We also think that the backdrop for both commodities that Buenaventura mines is very strong. Copper is a particular area of conviction for us, with attractive supply-demand dynamics, underpinned by the copper-intensive energy transition and a very muted supply outlook. Buenaventura is one of the few mining companies with a strong pipeline of development assets, so they can increase copper production into a rising supply/demand deficit. We also think the outlook for gold is attractive. It should benefit as central banks continue to move their foreign-exchange reserves into gold over the next few decades. We see Buenaventura as a high-quality producer that should benefit from a constructive outlook for both metals.
Full speed ahead
Full Truck Alliance (NYSE: YMM) is a digital truck broker in China. The Chinese trucking industry is fragmented, and most truckers operate as independent businesses, meaning FTA should do well as it gains share from offline truck brokers by offering lower logistics costs and efficiencies.
We also see solid potential for FTA’s take rate (the proportion of revenue it retains from the transactions it facilitates) to expand, given this is currently low relative to that of the offline model, and commission is a small expense for truckers.
With 25% of FTA’s market value in cash, we see scope for the firm to raise its payouts to shareholders in the years ahead. The company is trading on a price/ earnings (p/e) ratio of 18, an attractive multiple for an undermonetised business with a monopoly position.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Co-portfolio manager of Fidelity Emerging Markets
-
Could falling interest rates be the motivation savers need to invest?
Chancellor Rachel Reeves wants to spark an investment revolution. Falling interest rates could help her in her mission.
-
8 of the best properties for sale with shooting estates
The best properties for sale with shooting estates – from an estate in a designated Dark Sky area in Ayrshire, Scotland, to a hunting estate in Tuscany with a wild boar, mouflon, deer and hare shoot
-
8 of the best properties for sale with shooting estates
The best properties for sale with shooting estates – from an estate in a designated Dark Sky area in Ayrshire, Scotland, to a hunting estate in Tuscany with a wild boar, mouflon, deer and hare shoot
-
The most likely outcome of the AI boom is a big fall
Opinion Like the dotcom boom of the late 1990s, AI is not paying off – despite huge investments being made in the hope of creating AI-based wealth
-
What we can learn from Britain’s "Dashing Dozen" stocks
Stocks that consistently outperform the market are clearly doing something right. What can we learn from the UK's top performers and which ones are still buys?
-
The rise of Robin Zeng: China’s billionaire battery king
Robin Zeng, a pioneer in EV batteries, is vying with Li Ka-shing for the title of Hong Kong’s richest person. He is typical of a new kind of tycoon in China
-
Europe’s forgotten equities offer value, growth and strong cash flows
Opinion Jonathon Regis, co-portfolio manager, Developed Markets UCITS Strategy, Lansdowne Partners, highlights forgotten equities he'd put his money in
-
How retail investors can gain exposure to Lloyd’s of London
It’s hard for retail investors to get in on the action at Lloyd’s of London. Here are some of the ways to gain exposure
-
The flaw in Terry Smith’s strategy at Fundsmith
Opinion Fundsmith has invested in some excellent companies, but it has struggled to decide when to sell, says Max King
-
The goal of business is not profit, but virtue
Opinion Serve your customers well, and the profits will follow, according to a new book. It rarely works the other way around, says Stuart Watkins