Aubrey Capital Management, an Edinburgh and London-based specialist investment manager, has launched an emerging markets ex-China equity strategy to meet the requirements of U.S. Accredited Investors.
The fund was launched last month with USD 55 million of external seed capital, and is managed by Andrew Dalrymple, Rob Brewis and John Ewart. It is designed to provide investors access to high-conviction growth opportunities across emerging markets while deliberately excluding China, offering a differentiated approach to an evolving asset class.
The strategy applies Aubrey’s “three 15s” investment approach, targeting companies that can deliver 15% return on equity, 15% cash return on assets, and 15% earnings per share growth. The thresholds are designed to help identify high-quality businesses with sustainable growth prospects and strong cashflows which are best placed to capture the long-term secular expansion of emerging markets. The portfolio focuses on finding local champions in Asia, Latin America and EMEA, with stock selection driven by a bottom-up process that maintains high active share.
Dalrymple said: “Emerging markets are one of the most dynamic areas of global investing, but it is clear that some investors are increasingly seeking this exposure while excluding China. By concentrating on countries where structural reforms, favourable demographics and growing middle classes are driving long-term growth, we believe our EM ex China approach offers a compelling opportunity for U.S. Accredited Investors looking to diversify away from the region’s dominant market.”
