Morgan Stanley Investment Management (MSIM) has launched a strategy that seeks to invest in undervalued, high quality companies located or operating in developing markets.
The high conviction, concentrated portfolio, invests across sectors and geographies using a bottom-up selection approach.
Kristian Heugh, the fund’s manager and head of the global opportunity team, said: “By aiming to own a concentrated portfolio of high quality businesses purchased at a substantial discount to our estimate of intrinsic value, we believe we can capture opportunities and manage risk across equity market cycles.”
The Developing Opportunity Fund also integrates sustainability analysis with respect to disruptive change, financial strength, and environmental, social and governance criteria.
The investment team will focus on companies that have “sustainable competitive advantages” and long-term growth prospects.
“The hallmark of our investment team is understanding how companies can monetize their uniqueness over time,” Heugh said.
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