Discovering Emerging Markets Innovators

Uncovering small- and mid-cap emerging markets companies with the potential to be attractive long-term investments is no easy task. Aside from the fact that the individual markets themselves are separated by continents, languages, cultures, and forms of government, there are approximately 5,000 small- and mid-cap companies of every type in the emerging markets universe.

Due to the vast size and diversity of that market, traditional Wall Street-type investment research overlooks many of the most promising and innovative companies. That’s why there is no substitute for in-person, on-the-ground research when it comes to identifying the companies and investment ideas that hold the most potential, says Heidi Heikenfeld, CFA, portfolio manager of Oppenheimer Emerging Markets Innovators strategy.

“On the ground time is incredibly important,” says Heidi, who estimates she spends about 35% of her time traveling in emerging markets, meeting with companies, and researching investment ideas. That’s necessary because many of the companies that are most interesting in the small- and mid-cap space are not well understood by the markets, according to Heidi.

In the accompanying videos, Heidi explains her in-person, on-the-ground approach to researching small- and mid-cap investment opportunities in the emerging markets.

For additional insights, please visit our Perspectives on Emerging Markets collection.

Follow @OppFunds for more news and commentary.