If you’re looking for a bright spot in a sea of investing malaise, emerging-market equities are undervalued and offer opportunity, according to Pacific Investment Management Co.
Maria Gordon, an emerging-market equity-fund manager with the firm, called the stocks “cheap” during an interview with Bloomberg Television on Monday, saying PIMCO is buying in China after the nation’s shares tumbled this year.
“We are definitely fishing in the more cyclically distressed areas of the market where valuations are very, very cheap,” London-based Gordon said in the interview. “We’re selectively accumulating positions” in China, Gordon said, adding that shares of Hong Kong-based insurer AIA Group Ltd. are poised for “a lot of capital appreciation.”
As the news service notes, the MSCI Emerging Markets Index has tumbled as much as 31% from this year’s high, sending its price-to-earnings ratio to 9.4 on Oct. 5, the lowest level since December 2008.