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5 Emerging-Markets Medalists Weather the Storm

Looking back at a difficult 12 months for some of our favorite emerging-markets funds.

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This figures to be an interesting year for emerging markets. The current environment of falling share prices, falling oil prices, and a strong dollar could take us in a lot of directions. Let’s take a look at some emerging-markets Morningstar Medalists and how they have performed of late.

 Virtus Emerging Markets Opportunities (HEMZX), with a Morningstar Analyst Rating of Silver, performed brilliantly with a 7.3% gain for the 12 months through March 10 (top 2% of the category). The fund has a big overweighting in India and a big under­weighting in China. India rebounded from a poor 2013 when the fund lost 6.6% to have huge gains over the past 12 months. Rajiv Jain has 28% of assets in India versus 11% for peers and 9% in China versus 17% for peers. So, in the short run, that positioning will have a major influence. However, the main point of buying the fund is Jain’s skill in finding high-quality companies at decent prices, which ought to lead to solid long-term results even if India’s markets are merely middling for the next few years.

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Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.