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Best Emerging-Market Funds This Year? The Riskiest
The "best" fund in any category can be a moving target, but especially so with actively-managed EM funds. YTD vs. 3 Yrs? Does 10 years even matter? Some say yes, some say no. Because EM stocks carry higher volatility than developed international stocks (for the most part), there may be a reason to make relatively low volatility a key screen. If that is the case, Seafarer SFGIX is worth a look, even though it only has a 4 year record. Its 3-yr Sharpe ratio is ahead of the other EM funds we track. If you value management that separates itself from the index, Driehaus DREGX and Wasatch WAEMX might fit the bill, since they are small-cap focused. If high Sortino ratio (performance compared to downside risk) is important, SFGIX once again comes through. Just because an entire asset class tends to have high volatility does not mean you have to accept that in the funds you select. ODYMX has the best 10-year record (Leverenz having run the fund for 9 of the 10 years). American New World NWFFX has a darned good record, too. But understand it only has about 35% in EM stocks. And Seafarer is only 57% EM stocks, both of which explain the lower volatility. So there you go.
ARTYX, Lewis Kaufman's fund since he left Thornburg, has done pretty well so far at his new charge. He's basically matched SFGIX since inception, a little less than a year ago, w/ 67% EM stocks (right now, at least, according to M*).
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