Amid this low growth, low inflation period, people are talking about political risk in the United States. Does that change your investing approach or outlook towards emerging markets in any manner?
Global investors’ today talk about political risk in the United States - that is something that I have never heard in my lifetime. We associate political risk with other countries, but not with the United States. That’s a reality now and there is a cost associated with it, which is time and productivity. Therefore, a shift is taking place in the developed as well as the developing world.
Our focus is growth markets globally. We like to invest in markets that are out of favour. For instance, we were opportunistic and invested in Mexico despite all this rhetoric like the Wall, Border Tax, etc. which is not likely to happen, at least not as advertised. We have also invested in Latin America, and see it as having a bright future and want to increase our exposure. There aren’t too many people doing what we are doing.
What makes you bullish about these markets and also about India? What is it that you understand about these markets that the rest don’t?
We are extremely sensitive to which market is attracting support from institutional investors and has an entrepreneurial foundation. We are excited about the growth of the middle class, and adjunct to that is the large segment of youth and their incre