FRONTIER MARKET EQUITY
Frontier Markets are at the early stages of a multi decade process of growth and development. Their capital markets are relatively small and inefficient compared to the broader Developed and Emerging Markets. While flows into these markets relative to their size have been quite considerable in recent years, the potential size of these markets as they grow and mature is substantial given their geographical and demographic sizes.
Consilium integrates detailed bottom up analysis of individual companies with a comprehensive assessment of a country’s forward looking political and economic policy sets to construct a best ideas portfolio. The goal is to identify well managed companies with attractive and sustainable business models and strong balance sheets that are undervalued for various reasons. This could be due to the lack of knowledge and information on the street or misperception of the company, home country, and/or industry in which they operate.
Consilium believes that a highly focused, non-indexed, value approach that allows for periodic rotation of investments between different countries as they move through their political and economic cycles will allow for significant alpha generation over the long term. By limiting capacity in this strategy, we will be able to rotate investments and successfully exploit inefficiencies within these markets.