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| Raphael Kassin, Contributor, Citywire Global Community, a speaker at the marcus evans Emerging Market Investments Summit 2012, shares his views on the investment opportunities within Venezuela and Argentina. |
London, May 22, 2012 - (ACN Newswire) - Promising investments lie within Venezuela and Argentina, says Raphael Kassin, Contributor, Citywire Global Community. By creating a balanced investment portfolio that focuses on high yielding emerging markets, investors can obtain strong returns, he adds.
A speaker at the upcoming marcus evans Emerging Market Investments Summit 2012, Prague, Czech Republic, 19 - 20 June, Kassin discusses risk management techniques and his outlook for the future.
- What do you believe are some of the most promising areas to invest in at the moment?
There will always be returns available in buying benchmarks, but if investors want to outperform and achieve high returns, they must find undervalued and risky investments. Hidden profits are usually found in countries with extreme yields, such as Argentina and Venezuela. Although it is not a good idea to have a portfolio focusing only on these two countries, they should hold a strong weight. Investors must also consider timing when looking at emerging markets. There are times when it is better to be in cash than being invested at all. This is a difficult proposition for traditional fund managers.
There always are opportunities in hard currencies and local currencies. However, there is the potential that the Euro will blow up, and if it does, it will affect the Dollar and the emerging markets are linked to the Dollar. Brazil is a very interesting example; at the beginning of the year, the exchange rate for the Brazilian Real was 1.65, however, it is now at 1.92. Clearly there has been a worsening and a big loss in trade. And it could still get worse.
- What risk management techniques would you suggest when investing into emerging market economies?
Fundamentally, buying low and selling high is the way to succeed. Benchmark investing should only be used as a base for creating a portfolio.
In order to be a successful absolute return investor, risks must be taken. Investors must look forward at where the opportunities are and create well balanced portfolios if they want to achieve strong returns. But balanced does not mean riskless. Risk needs to be smartly defined. The alternative is an average portfolio.
- What should investors look for in fund managers?
Investors should look for a fund manager who has a good reputation and track record in the industry, which consists of performance in the long-term. The fund manager's philosophy should match the investor's target and expectations. Investors must find four to five talented managers who focus on getting above index returns and should look for niche players who are interested in finding hidden treasures.
Since the crisis in 2008, the Lehman collapse and Madoff scandal, investors have become overly cautious. Fund managers who work in large firms have lost the power to have meaningful input and have become puppets who achieve average returns. Strong fund managers can be found in small family offices where fees are lower and they get above index and total returns.
- What is your outlook for the future?
Globally, there is a lot of growth in China as it has a strong model that is based on the philosophy of life. The Chinese are very commercial and will continue to generate growth, which will help the rest of the world, as goods can be produced in China much cheaper than elsewhere.
Europe, on the other hand, is a mess. Politicians are only worrying about their own country instead of the European Union as a whole. The social welfare model will slowly break down along with the Euro. And frankly, it is just too expensive to even travel in continental Europe these days. How can you dig yourself out of that hole?
The US is slowly recovering. A two to three per cent growth is better than negative growth as it keeps the large ship moving along.
About the Emerging Market Investments Summit 2012
This unique forum will take place at the Radisson Blu Alcron Hotel, Prague, Czech Republic, 19 - 20 June 2012. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes visionary presentations and interactive forums on closely monitoring the turning points in both micro and macro economic trends, proactively exploring the BRICs and attractive frontier markets to catch the new wave of investment and acquiring profound insight on risk management techniques. For more information please send an email to info@marcusevanscy.com or visit the event website at www.emisummit.com/RaphaelKassinInterview
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Contact:
Stacey Melvin,
Journalist, marcus evans, Summits Division
Tel: + 357 22 849 400
Email: press@marcusevanscy.com
Topic: Research / Industry Report
Source: marcus evans Summits
Sectors: Daily Finance, Daily News
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