Emerging markets equity

The diversity and depth of emerging markets equities offer ample opportunity to deliver excess returns, especially when we incorporate where a company is in its life cycle

Industrial life cycle philosophy

The way in which companies can create wealth for their shareholders varies depending on where companies are in their maturity cycle.

We aim to identify these opportunities through our proprietary industrial life cycle (ILC) methodology, which focuses on finding companies’ true economic worth and their path to creating value for shareholders over time.

The emerging market universe is complex. By focusing on cash flow and economic returns, we can eliminate accounting distortions, which allows for more accuracy in our evaluation of management skills and execution within the context of a company’s maturity.

The chosen stock ideas are managed within a core-oriented portfolio that has a high active share, derived almost exclusively from stock-specific sources. We also have access to the extended investment team at River and Mercantile, including the macro team, which gives us the opportunity to consider investment through a macroeconomic lens, where appropriate. We believe this philosophy allows us to achieve a steady source of excess returns that are inherently repeatable on behalf of investors.

Process

Through our ILC investment process, we aim to extract repeatable excess returns from emerging markets, across the spectrum of style, country, sector and size. Investing across broad capitalization tiers gives us the ability to invest into diverse themes and regions for different ideas.

Classify

Companies are classified into one of the distinct stages of corporate maturity – from growth through very mature – to create a unique peer set from which companies are analyzed.

Identify

Companies that are pursuing appropriate value-creation strategies for their life cycle are identified.

Select

We select a portfolio of companies across the spectrum of corporate maturity that are pursuing a value-creation strategy. This will be where the potential of these companies has yet to be acknowledged by current stock price expectations.  

During stock selection, we carry out in-depth analysis of individual company risks, including where we see cause for concern in terms of ESG (environmental, social and governance) issues.

Our investment strategies

We offer the following two strategies for investors seeking exposure to emerging markets equities:

R&M Emerging Markets ILC Equity

R&M Emerging Markets Opportunities ILC Equity

Meet the ILC team

Al Bryant

Head of Emerging Markets, ILC Equities

Al Bryant

Head of Emerging Markets, ILC Equities

Al Bryant, CFA is a portfolio manager and CIO/DOR in the Industrial Life Cycle (ILC) Equity team, specifically managing the Emerging Market (large cap) and Emerging Market Opportunities (smid cap) strategies. Mr. Bryant joined River and Mercantile in June of 2017. Prior to that, Al spent twelve years at Credit Suisse.  During that time, Al focused on developing and implementing global equity investment strategies based upon the ILC framework. The ILC framework is a structured global equity investment process that Al has been developing since 2004. Prior to joining Credit Suisse, Mr. Bryant spent four years as a portfolio manager for institutional and private clients at Segall Bryant & Hamill Investment Counsel, based in Chicago. Mr. Bryant holds an MBA in Finance from the University of Wisconsin-Madison, and a BA in Urban Studies and Economics from the College of Wooster

Ravi Cheema

Equity Analyst

Ravi Cheema

Equity Analyst

Ravi is an Analyst on the Industrial Life Cycle (ILC) Equity team. In addition to his analyst role, Ravi is responsible for coordinating macro-economic research efforts as a senior member of River and Mercantile Group’s Macro team. Prior to joining River and Mercantile, Ravi held roles at HSBC and KPMG. Ravi graduated from the London School of Economics with a First Class Honors degree in Economics, and is a CFA charterholder.

Falko Huttenberger

Equity Analyst

Falko Huttenberger

Equity Analyst

Falko is an investment analyst and assistant portfolio manager in the Industrial Life Cycle (ILC) Equity team. Falko joined River and Mercantile in June 2017. Prior to that, he spent seven years at Credit Suisse Asset Management in Switzerland, UK and USA. He was a Vice President and assistant portfolio manager in the Global Equity Investment Group in Chicago. Before Chicago he was involved in the setup of new businesses and the due diligence process of seed capital investments in hedge funds within the Emerging Markets Group at Credit Suisse in the UK. Prior to that he participated in manager selection for directional strategies and was part of a fund of hedge fund investment team at Credit Suisse in Switzerland. Falko holds a Master of Science in Finance and Investments from Rotterdam School of Management, and a BS in Business with a Major in Finance from University of San Francisco McLaren School of Management. He is a CFA charterholder.

Sudin Poddar

Portfolio Manager, ILC Equities

Sudin Poddar

Portfolio Manager, ILC Equities

Sudin Poddar, CFA is a Portfolio Manager and Analyst on the Industrial Life Cycle (ILC) Equity team. Prior to joining River and Mercantile Group in June of 2017, Mr. Poddar spent ten years at Credit Suisse helping build and grow a core equities business centered on the Industrial Life Cycle framework. Primary amongst his responsibilities was to manage a Global All Country Small Cap strategy which was incepted in January of 2014. Mr. Poddar holds an MBA in Financial Analysis and a BS in Business with a Major in Finance from Kelley School of Business at Indiana University.

Ryan Shanahan

Equity Analyst

Ryan Shanahan

Equity Analyst

Ryan is an Equity Analyst on the Industrial Life Cycle (ILC) Equity team based in Chicago, IL. Prior to this, Ryan was a Senior Investment Analyst on the Solutions team in Boston, MA, where his primary responsibilities included investment manager research, DB and DC reporting, and database development and maintenance. Ryan graduated from Bentley University in 2015 with a BS in Economics-Finance and is a CFA Charterholder.

Latest perspectives

Monthly macro update: April 2021

Monthly macro update: April 2021

Article April 14, 2021

At the turn of the year, we discussed how record stimulus and low borrowing costs…

5 min read

Managing pension risk in 2021

Managing pension risk in 2021

Article April 7, 2021

What pension risks are most prevalent in 2021 and what are some ideas plan sponsors…

6 min read

US pension briefing – March 2021

US pension briefing – March ...

Article April 6, 2021

Pension discount rates maintained their upward momentum, closing the month yet another 0.22% higher which…

3 min read

Portable alpha – increased returns with reduced risk

Portable alpha – increased returns ...

Article April 5, 2021

The investment strategy known as “portable alpha”, the combination of absolute return hedge funds and…

5 min read