Terra Partners* seeks to achieve capital appreciation while managing volatility via a disciplined and diversified value investing strategy in frontier and smaller emerging markets.
The team utilizes deep-dive fundamental research to construct a portfolio primarily composed of small and undiscovered companies not widely held by foreign institutions. The strategy is based on the principals’ extensive years of experience investing in frontier and emerging markets through both bull and bear markets. The team’s deep understanding of local markets and country-specific risk factors, as well as frontier market dynamics provides an edge in identifying stocks and portfolio construction.
Terra Partners often targets ‘under-followed companies’ in markets that lack significant foreign institutional investors. It usually ‘hunts where others do not’ and seeks to invest in securities that are known more to local investors than foreign investors.
The team travels extensively to visit companies in every country. The approach is focused on performing intensive in-country research while building local knowledge and relationships. This process results in an eclectic portfolio of long positions diversified across geographies. The Top 10% of names typically comprises 30% of the portfolio.