Emerging markets experienced steep declines in 2015, suffering far worse than their developed counterparts; the aggregate emerging market equity indices have lost almost a quarter of their value since reaching highs in late-April. Currencies of many developing countries have tumbled as well.
We believe the recent correction appears overdone. Given the current circumstances, we do not see the underpinnings of a crisis similar to that of 1997. In fact, the recent broad-based emerging market sell-off presents attractive value opportunities for a long-term investor, though short-term risk persists.