Institutional Investor’s Alpha: Cartica Management’s Teresa Barger on Activism, Emerging Markets-Style

May 19, 2016

In the News

There’s plenty of room for improved corporate governance in emerging markets, Barger says. And investors can benefit from those changes.

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Activist investing is difficult enough when the target companies are large, transparent and listed in developed markets. Applying activist tactics to companies in emerging markets requires a completely different approach, says Teresa Barger, co-founder and CEO of Washington-base, $2.4 billion hedge fund firm Cartica Management and a veteran emerging-markets investor.

“In the emerging markets, countries can go wobbly on you,” explains Barger, who spent more than 20 years at the World Bank’s International Finance Corp., where she worked with Cartica co-founder and global strategist Farida Khambata on a portfolio of emerging-markets equity investments. “It could be like Venezuela, where they just go into an inexorable descent into economic disaster, or Argentina, another example.”

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Click here to read the full Institutional Investors Alpha article.