As emerging markets diverge, managers see a new approach to winning

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A great divide is forming between emerging markets and companies backed by foreign governments. Michael Bapis of Vios Advisors at Rockefeller Capital and Ari Wald of Oppenheimer discuss where to find opportunity overseas.

Companies influenced by government decisions often don't put profits first, Siddarth Kapoor, CEO of Silver Mount Capital, told CNBC. With China, India and other emerging market nations playing a more active role in corporate affairs, the risk could be that there will be a misalignment in interests with shareholders over time.have performed far better. The XSOE ETF has added 10% so far this year compared with the 1% gain on the EEM ETF.

Bapis anticipates tech-focused companies heading into less-developed markets and expanding at a rapid pace. This, he says, is where opportunities lie. "We think global equities, EM included, are now reversing higher and you're going to see global participation expand and lead to additional upside for markets overall not only through the bounds of the year but into 2021 as well," Wald said during the same "Trading Nation" segment.

 

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