Citywire Selector - For Professional Investors

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

JPM’s Mehta eyes niche EM material stocks

JPM’s Mehta eyes niche EM material stocks

The materials sector and India as a whole are places where the opportunity for long-term growth potential is rife.

That is according to Citywire A-rated Amit Mehta, who runs several funds at JP Morgan, including the JPM Emerging Markets Small Cap fund, which he manages alongside + rated Austin Forey.

Speaking to Citywire Selector, Mehta, who currently has 10.8% of the small-cap portfolio allocated to India and 3.3% allocated to the materials sector, said plastic processor company Supreme Industries combines a sector and a country which he believes has huge potential.

‘We have 1.7% in Supreme Industries, I would not class it as a traditional materials business, it is the largest processor of plastics in India, so it’s not a commodity business.’

‘Both the company and the sector within India have a great growth outlook based on its market share, as you get much more consolidation within a very fragmented sector. We believe India will continue to grow at a rate significantly faster than most other emerging market and developed market countries.’

His comments come at a time when JOHCM's Samir Mehta had warned that the top-line growth of many Indian companies was currently underperforming.

Mexico on the mind

Elsewhere in the portfolio, Mehta currently holds a 6.6% allocation to Mexico, a position he said would not be affected the by the outcome of the US election.

‘The US election won’t affect our allocation to the country, the election hype has provided us with opportunity, which is due to what has happened at a currency level rather than what is happening at an individual stock level.’

‘We have always had exposure to Mexico, as we find it a good corporate sector. Our allocation has nothing to do with the politics in the region and for us, it is about where we can find the best corporate holdings.’

The JPM Emerging Markets Small Cap fund returned 16% in USD terms over the three years to the end of October 2016. This compares with a 0.35% fall by its Citywire-assigned benchmark, the MSCI EM (Emerging Markets) Small TR USD, over the same time period.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire DACH 2016

    Citywire DACH 2016

  • Citywire Alt Ucits 2016

    Citywire Alt Ucits 2016

  • Citywire Italy 2016

    Citywire Italy 2016

  • Citywire Berlin 2016

    Citywire Berlin 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Switzerland 2016

    Citywire Switzerland 2016

  • Citywire Thailand 2016

    Citywire Thailand 2016

  • Citywire Paris Alt Ucits 2016

    Citywire Paris Alt Ucits 2016

  • Citywire Deutschland 2016

    Citywire Deutschland 2016

  • Citywire Amsterdam 2016

    Citywire Amsterdam 2016

  • Citywire Montreux 2016

    Citywire Montreux 2016

  • Citywire Latin America 2016

    Citywire Latin America 2016

  • Citywire Milan 2016

    Citywire Milan 2016

  • Citywire Munich 2016

    Citywire Munich 2016

  • Citywire Zurich Alt Ucits 2016

    Citywire Zurich Alt Ucits 2016

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Paris 2015

    Citywire Paris 2015

  • Citywire Global New Ideas 2015

    Citywire Global New Ideas 2015