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EM Small-Cap Value: What Is Available?

BenWPBenWP
in Fund Discussions
Recent discussions on MFO on EM funds ex-China have set me on a search for a slightly different niche, namely small capitalization emerging market value stock funds. I have linked a SeekingAlpha article from 2020 on the subject as well as a page from LSV, the managers of several value MF’s. They have a SCV EM strategy, but no mutual fund.

https://seekingalpha.com/article/4325359-case-for-emerging-markets-small-cap-value

https://www.lsvasset.com/emerging-markets-small-value/

The two funds I own that have considerable EM exposure are SFVLX and EYLD. The former is an all-cap fund, with a decided international value methodology, while the latter is the real McCoy. EYLD does not avoid China and it has an array of holdings not easily recognizable, at least to me. Those who are familiar with Meb Faber at Cambria will not be surprised to see that stock selection in EYLD follows his basic tenets regarding free cash flow and profitability. His largest fund is SYLD, a worthy rival to COWZ on the domestic front. His FYLD does a decent job with international stocks, as well.

MSCI runs an EM SCV index and I’m in search of funds that follow it, specifically the value orientation. EEMS and DGS come up on SC EM searches, but they aren’t quite what I hope to find. Grandeur Peak might fit the bill, but they seem like a growth shop to me. Please post any suggestions you have for this market segment.

Comments

  • sma3
    I have used QUSIX and QUSOX since David wrote a nice article about it in 2015. It has beaten the index overall, although it is more volatile and is in about the top 1/3 of int small cap value funds per M*

    MFO classifies it as "Int Small cap core" so it doesn't show up on a "int small/mid cap value screen"

    It has been lagging a bit recently. I have not dug into the reasons why
  • Sven
    Grandeur Peak oversea funds are growth oriented. Only their Contraian fund is US value oriented but that is not what you are seeking. Staying with all cap value fund such as SFVLX is the best choice; it is categorized as mid cap value fund.
  • TheShadowTheShadow
    Used to own Templeton Emerging Markets Small Cap Fund, but I liquidated my position a couple of years ago.
  • LewisBraham
    FEMS would be value oriented, and SFVLX has about half of its portfolio in small- and mid-caps.
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