India Shines Brightly for These Managers
Defying their benchmarks, some have made surprisingly large investments.
Although victory in cricket's World Cup recently brought widespread joy to India, investors in that country's stock market have not been in a festive mood this year. In contrast to most emerging markets, which have posted solid gains in 2011, the MSCI India Index has fallen 4.3% through April 22. Of the 21 emerging markets tracked by MSCI, only Peru and Egypt have fared worse.
Fears that rising oil prices will hurt India particularly hard are one reason for this decline. With a vast population spending much of their meager income on food, sharp increases in food prices create further worries. In addition, the country's poor infrastructure is an ongoing concern.
Many fund managers, though, remain attracted to India. That's not surprising, given that the country still has a rapid growth rate and is home to global leaders in fields such as outsourcing and steel. What's attention-getting, though, is that a small number of managers have made major commitments there. In certain cases, these managers run U.S.-focused funds whose peers, by and large, invest little, if any at all, in any emerging markets, much less hold a double-digit stake in India alone.
Gregg Wolper does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.