Our Approach

Cartica is a long-only, single strategy manager holding a concentrated portfolio of diverse small and mid-cap emerging market companies.

Our investment approach is shaped by the nuances of the emerging markets. Our “active ownership” engagement with publicly-traded emerging markets companies is designed to create long-term value for the company and its shareholders.

The firm employs a three-pronged investment approach: country selection, company selection and company engagement.

Top-Down Country Selection

“Historically, outsized emerging markets returns are found in countries entering a period of positive economic and political reform. We seek to identify countries with these tailwinds to best position our portfolio.”

At Cartica, we believe differentiation among emerging market countries is a key competitive advantage in our investment approach. Our country selection is an essential tool in our risk management. When selecting countries to invest in, we identify “focus” countries with favorable macroeconomic and policy themes that will act as tailwinds to the underlying companies in the portfolio.

Bottom-Up Company Selection

“At our core, we are stock-pickers and we believe our performance supports this. We perform deep, fundamental analysis to identify investment opportunities within our focus countries. Our deep network within these markets enables us to ensure that we are investing in quality companies with high-integrity management and ownership.”

We use fundamental bottom-up analysis to identify investment opportunities within our selected focus countries.  In selecting “Cartica companies” we perform a rigorous analysis of the company’s financials and its business model.  We assess the integrity of management, board and shareholders, and we review the treatment of minority shareholders.  Our vast network within emerging market countries provides us with unmatched insight into target companies and controlling shareholders.


“Over 80% of listed emerging markets companies are controlled by a founder, family or other controlling group. Standard developed market activist tactics such as public letters and proxy contests are not viable in the emerging markets. We work with the controlling shareholder(s) to drive positive changes that maximize value for all shareholders.”

Across our business, we tailor our engagement strategies to the nuances of emerging markets companies and the capital markets in which they operate. Historically, Cartica has worked with our portfolio companies on a variety of subjects including balance sheet restructurings, the sale of non-core assets, improved disclosure practices including segment reporting and adding important competencies to boards of directors.


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