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Starting out as a classic value investor ala Graham and Buffett, EMQQ founder Kevin Carter had a revelation after the unwinding of the late 1990s tech bubble that emerging markets were going to be at the forefront of the next massive wave of internet growth. As Carter puts it, "You have billions of people just starting to go online, changing their consumer behavior... this is the greatest investing opportunity of our lifetimes." As a result of his revelation, Carter gradually made the shift from traditional value investing to high-octane emerging markets internet growth.
At first, he recommended funds like the Columbia Emerging Markets Consumer ETF (ECON) to friends and colleagues, believing it to be the best fund available to capture this growth. But then about 7 years ago, Carter had a second revelation: The best fund to capture emerging markets internet growth doesn't yet exist. Teaming up with his friend Dr. Burton Malkiel of "A Random Walk Down Wall Street" fame, he decided to form an index committee to create a pure-play index and accompanying ETF, the Emerging Markets Internet & Ecommerce ETF (NYSEARCA:EMQQ). The fund launched in 2014, gathering more than $400M in AUM over the past 5-plus years.
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Disclosure: I am/we are long EMQQ, PDD, STNE, YNDX, JMIA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Kevin Carter is long EMQQ, PDD, STNE, YNDX and JMIA.
Jonathan Liss doesn't have positions in any of the stocks or funds mentioned in today's show.