Ticker recently interviewed Heidi Heikenfeld, a Co-Portfolio Manager of Oppenheimer Emerging Markets Innovators Fund (EMI). The portfolio was introduced in 2014 as a complement to EM large-cap mandates and to Oppenheimer Developing Markets Fund, which invests primarily in large-capitalization stocks. EMI focuses on small- and mid-cap stocks, a much larger universe of almost 5,000 companies with market caps in the $500 million to $10 billion range.

In particular, the Fund tends to find the best opportunities in high-growth, high-profit sectors such as Consumer, Health Care and Technology.

In the interview, Heidi talks about:

  1. What differentiates the Fund. Heidi explains she invests at the intersection of strong earnings growth and positive impact. When possible, she looks for companies that are aligned with the aspirations of a country’s people because they are enhancing education, fostering financial inclusion, delivering healthcare, or improving the environment. In the process, the Fund also offers a concentrated exposure to entrepreneurial culture in the developing markets.
  2. Her investment philosophy. She looks for innovative companies with durable competitive advantages that lead to strong, long-term growth.
  3. Her investment process. She identifies opportunities by looking for companies that are benefitting from long-term structural growth themes, such as industrial automation or augmented and virtual reality. Valuation is a priority, as she looks to invest in good companies at attractive prices, whose valuations she believes could more than double over the next three years.

Read the full interview here.