For Clem Miller, investment strategist at Wilmington Trust Advisors, investing wisely in international markets is all about picking and choosing the right names from what he calls “a global opportunity set,” one that’s comprised of world-class companies that are located in various different jurisdictions and that derive their revenue from running successful, global businesses.
“We want to take advantage of this global opportunity set so we go for the best companies in each geographical segment,” Miller said. The firm’s operating term is “best,” which, Miller said, Wilmington Trust defines in a couple of different ways.
For one, the firm likes companies that are listed in both large and small developed markets (the United States included), but that invest globally throughout the emerging markets. And then, they also like companies located within the emerging markets themselves, since “emerging markets offer the greatest growth opportunity and we as investors would like to benefit from the growth,” Miller said.
And of course, value is also important, “because we don’t want to invest in expensive names that will grow fast. We want to ideally be invested in names that are inexpensive but that offer value over time, so we’re more interested in growth opportunities than in value,” Miller said.
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Because Wilmington Trust doesn’t pick stocks itself, the choice of which managers and funds it uses is very important indeed. The company uses various sources of information to evaluate particular investment managers, for their ability to choose asset classes, geographies and companies to invest in, as well as navigate global macroeconomic trends, such as the ongoing weakness in many emerging market currencies.