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Wasatch Frontier Emerging Fund Manager Laura Geritz on finding investment opportunities in frontier markets that have strong growth potential.
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Well after a seven country sixty company adventure around the world -- Garrett has done her homework and is -- to help you cash in.
A new frontiers she is the Wasatch front tier emerging small countries fund manager -- -- else.
From Salt Lake City and Fox Business exclusive.
You went and saw six become the companies and seven.
Countries.
Where -- you find the best opportunity.
You know really were.
Finding opportunities all across -- frontier markets these.
Countries have.
Large populations in very high quality companies that fit the -- such process.
-- companies that we seek.
OK let's talk about some specific countries what about names like what about Pakistan.
What about RRE is to me what specific country need to find the best opportunities Nigeria I know a lot of front your folks talk about.
Nigeria -- We'll both Pakistan Nigeria have very similar -- population sizes -- Pakistan has close to 200 million people.
In Nigeria has a -- 170 million people.
Both countries have consumer markets that are growing rapidly and we find create companies and and both of these countries.
Do you worry though about and I get this question all the time has always been mentioned -- -- markets do you worry about politics are you concerned when you.
-- -- -- -- -- It's kind of the old man factor somebody described to me at land on the plane an -- country and I think to myself oh boy am I gonna get shot at by go on the tarmac do you worry about that -- -- Clark.
You know the media paints.
An oblique image of some of these countries and Pakistan was -- surprisingly pleasant country with nice people.
And and we found -- companies there to be.
Absolute least stellar.
-- the majority of your holdings -- small caps that question I also get a lot is how to what invest besides doing a -- it's very difficult for US investors.
To buy into specific especially smaller cap companies and some of these frontier markets cracked.
-- it is very difficult it's very difficult for us is a firm to get senate trading.
-- authority in these markets as well.
How do you do without and because you've got the fund you're offering these companies in your fund and and that -- say it's a new fund -- only started in January so I guess the jury is gonna be out as to whether or not the frontier.
Names are gonna perform for you but how do you listen up his relationships.
You know we have a fantastic operations in compliance department that does the work for -- when we go on the ground in each one of these countries we -- this as well.
So you know -- states and great process by our operations in compliance seem to get these countries set up for our investors limit us a couple of examples of companies that you are investing in an art want to.
-- is one of the company is a small a -- was an Indonesian company.
Tell me about this one -- good secular.
Yeah it's it's the market leading tile company in Indonesia and in what's you know interesting about these markets is that there NASA -- economies this is a hundred million market cap company with a potential.
I think to expand eightfold over -- you know of long term horizon for investors that have the patience to you know the typically some money in the stock.
It's you know it's just a great company high returns on capital -- -- growth with the dividend as well.
So it's a really excited undiscovered name -- -- -- -- us again this is a consumer name Latin American name.
Talking about this -- because it seems that a lot of the companies that you're putting money into our consumer names.
You know you're trying to play that growth prospects over in these in these frankly some of these -- emerging market frontier markets.
Yet this is actually one -- -- US investors can hold that saying it's an eighty are so that -- -- -- it's sunny Donald's in Latin America it's actually McDonald's largest franchise overseas.
It has absolutely great growth potential because of the demographic factors in these countries young populations -- you know -- emerging middle class story so.
You know and it's a well managed company that.
It you know we you know management team has -- long term.
Members of the McDonald's franchises are very good story one more and -- -- that's how we're currently brother in Argentina it's like an -- lower the big question here one that despite -- -- You know what he just have great -- and growing in middle class story in these markets -- you know if you think about Internet penetration in the frontier it's just not what it is in the US so that also gives you a driver for.
Potential future growth -- company's net cash -- it's a great story.
It's and it's a very good story to very complex story ends and we think compared to eBay guess well there's -- -- piece of a story like.
Alert parents fund manager -- -- that's frontier emerging small countries thank you very much for coming on the show very interesting thank.
Thanks so much for having -- really appreciate it.
