Emerging markets stocks are known to offer diversification benefits to portfolios made up of domestic stocks. For a closer look at US-traded stocks of companies in emerging markets, we ran a screen.
We began by screening for US-traded Chinese companies - China is the largest emerging market country - that have been outperforming the market over the last quarter, with greater than 20% return over the last quarter.
We then screened for those with the confidence of institutional investors such as hedge fund managers, with net institutional purchases over 5% of share float for the last quarter.
Interactive Chart: Press Play to compare changes in market cap over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
Do you think these stocks will outperform like hedge funds expect? Use this list as a starting point for your own analysis.
1. ChinaEdu Corporation (CEDU): Provides educational services to the online degree programs of universities in the People's Republic of China. Market cap at $133.91M. Price at $7.28. Performance over the last quarter at 25.78%. Net institutional purchases in the current quarter at 513.5K shares, which represents about 16.2% of the company's float of 3.17M shares.
2. 51job Inc. (JOBS): Provides integrated human resource services primarily in the People's Republic of China. Market cap at $1.70B. Price at $63.25. Performance over the last quarter at 42.30%. Net institutional purchases in the current quarter at 573.4K shares, which represents about 6.39% of the company's float of 8.98M shares.
3. 21Vianet Group Inc. (VNET): Provides carrier-neutral Internet data center services in China. Market cap at $653.55M. Price at $11.41. Performance over the last quarter at 25.68%. Net institutional purchases in the current quarter at 4.1M shares, which represents about 14.53% of the company's float of 28.21M shares.
*Institutional data sourced from Fidelity, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.