Driehaus Capital Forms Driehaus Frontier Emerging Markets Fund
Driehaus Frontier Emerging Markets Fund, the new mutual fund offering provides institutional investors with dedicated exposure to high growth frontier market companies, has been launched by Driehaus Capital Management.
The
fund is managed by Portfolio Manager Chad Cleaver, CFA, who also serves
as the lead portfolio manager of the Driehaus Emerging Markets Small
Cap Growth Fund and as co-portfolio manager of the Driehaus Emerging
Markets Growth Fund. These funds have held equity allocations to
frontier market countries since 2008 and 1998, respectively. The fund
leverages existing Driehaus emerging markets investment research while
providing the emerging markets team, and the wider Driehaus research
platform, with the benefits of additional market insights into the
frontier markets universe.
According
to Mr. Cleaver, "Frontier markets are an increasingly attractive
opportunity set for investors. The investment universe is comprised of
companies that are often under-owned by investors while supported by
strong demographics, increasing direct investment, and growing local
demand. Further, frontier markets serve as a strong diversifier as
frontier market equities have a fairly low correlation to other segments
of the equity market."
The
diversification benefits of a frontier market allocation are evident
when comparing the correlations between frontier markets to other
segments of the equity universe. For the 10-year period, the highest
correlation for frontier markets is 0.67 to global (ex-US) large cap
equities. This is superior to even the lowest correlation between any
other two segments of the equity universe.
Source: PR Newswire
